Monetary policy is not able to control inflation and growth slowdown: K C Chakrabarty

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K C Chakrabarty, RBI Deputy Governor, has admitted that monetary policy has failed to contain inflation and check slowdown in growth.

At an Assocham event, Chakrabarty said, "Slowdown in the growth is for a variety of reasons. Yes, to that extent monetary policy is not able to control the inflation and not effective, it is responsible. We cannot say something wrong happening in the economy, we are not responsible. Collectively, we are all responsible."

Inflation has hovered around the 8 per cent mark, much above the comfort level of government and RBI.

The economic growth has also been losing vigour. For the first quarter of the current fiscal, the growth declined to 5.5 per cent. GDP growth moderated to 9-year low of 6.5 per cent in 2011-12.

Story first published: Thursday, November 22, 2012, 10:30 [IST]
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