Govt. Takes Cautious Approach Towards RBI Policy

The government cautiously reacted on latest RBI Policy by saying it has taken note of the RBI maintaining status quo on key lending rates and said a neutral policy stance reflected recognition of the fact that inflation remained "firmly under control".

"The Monetary Policy Committee (MPC) recognized that inflation remains firmly under control, retaining its inflation projection for the second half of FY 2018 and assessing that the risks to this projection are evenly balanced. For that reason, it has maintained a neutral policy stance," a Ministry statement said.

RBI Governor, Urjit Patel mentioned that they are taking close eye on the overall macro economic scenario and careful measures will be taken to control the inflation issue.

"The MPC has also retained its annual GVA forecast for FY18 of 6.7 per cent recognising several significant developments and emphasizing the government's reform efforts such as GST, Bank Recapitalization Package and improving Ease of Doing Business Ranking," it added.