Curb inflation to boost growth: RBI governor

Posted By: Religare
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Curb inflation to boost growth: RBI governor
The Reserve Bank of India is constantly struggling against inflation. Recently, the raise of its lending rate for the ninth time since March 2010 was also a step towards the controlling process. However, despite the continuous hikes, the headline inflation was recorded to be high 9% in March.

Commenting on the situation further, RBI governor Duvvuri Subbarao exclaimed that in order to boost the growth of the country, it has become extremely necessary to curb the inflation.

Concerned about the inflation that is majorly effecting the growth of the country, RBI is more worried about the livelihood of the poor gets to face the inflation more strikingly. Thus, curbing inflation is also necessary in order to ensure a decent livelihood to those poor.

The efforts of the central bank has no doubt pulled the inflation from that of April 2010, however, more works needs to be done in the same regard.

Focusing the concerns about the poor who gets badly affected by inflation, RBI and other banks are required to cover the 5,70,000 habitations that are bereft of bank access. The amount of 5, 70,000 habitations circles down to approximately 95% of the total habitation of the country.

Therefore, taking a firm decision in the same regard, government and the central bank have collectively decided to cover all the villages bearing more a population of 2,000, to be covered under a bank branch.

Read more about: bank, rbi, inflation
Story first published: Friday, May 20, 2011, 9:30 [IST]
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