 "RBI decision on policy rates positive: Pranab")
New Delhi: Finance Minister Pranab Mukherjee today welcomed the Reserve Bank’s decision to keep policy rates unchanged and hoped that inflation would moderate in the coming weeks.
“The need to improve the business sentiments and recover the growth momentum in the remaining months of the current fiscal necessitated a review of the monetary policy stance.[caption id=“attachment_158007” align=“alignleft” width=“380” caption=“The economic challenge is not over for the country. Image courtesy PIB”]  [/caption]
“I believe that inflation will moderate further in the coming weeks and, therefore, the announcement today is welcome,” Mukherjee told reporters outside Parliament House complex.
Concerned over economic slowdown, the Reserve Bank of India (RBI) today kept policy rates unchanged.
The central bank maintained repo (rate at which banks borrow from RBI) at 8.5 percent, reverse repo (rate at which the RBI borrows from banks) at 7.5 percent.
The finance minister also welcomed steps taken by RBI on Thursaday to check the rupee’s slide and speculations by imposing restrictions on forward trading in the local currency by FIIs and traders, and by capping banks’ exposure to the forex market.
“I also welcome the Governor’s resolve to check the speculative interventions in foreign exchange market which among other factors have contributed to the sharp depreciation of the Indian rupee against the US dollar,” Mukherjee said.
He further hoped that today’s announcement should help in regaining India’s growth momentum with improved macro economic parameters in the remaining period of fiscal year 2011-12.
“(RBI) Governor has chosen to reflect his concerns on growth which has faltered in the past few months with October IIP reflecting a significant contraction across all industry sectors,” Mukherjee said.
He also said the “appreciable decline” in food inflation in November has resulted in a dip in headline inflation for November.
A sharp fall in vegetable prices has pulled down food inflation to a near four-year low of 4.35 percent for the week ended 3 December. Headline inflation in November fell marginally to 9.11 percent from 9.73 percent in the previous month.
Inflation in manufactured goods remains firm around 7.7 percent.
PTI
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
](https://images.firstpost.com/wp-content/uploads/2011/12/pranab3803.jpg){kind=link}