It's a responsibility of RBI to listen to "silent voices" affected by rising prices: D Subbarao

It's a responsibility of RBI to listen to
Reserve Bank Governor D Subbarao said the monetary authority has the responsibility to listen to "silent voices" of millions of people impacted by rising prices.

Subbarao, said while addressing a University in Kashmir, "There is an important constituency in the country that is hurt by inflation. Their voice also needs to be heard. It is the responsibility of public policy institutions like the Reserve Bank to go out of our way and listen to silent voices."

The governor was brushing aside the criticism that came his way for purportedly hurting growth by implementing measures to check inflation.

The Governor said it was incorrect to say inflation has not been controlled. "Inflation has come down significantly. It was in double digits in 2009-10 and has now come down to around six per cent," he said.

He also said that RBI has started reducing interest rate (repo rate) and last cut it by 0.25 per cent on May 3 to boost growth.

It is impossible to bring down inflation without some sacrifice in growth, he said, adding, "Our endeavour should be to reduce that sacrifice."

Read more about: rbi
Story first published: Thursday, May 9, 2013, 10:30 [IST]
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