RBI responsible for controlling inflation: Chandy

THIRUVANANTHAPURAM: The RBI is responsible for controlling and regulating the country's monetary and financial system, Chief Minister Oommen Chandy said. Speaking at a seminar on 'India in a Globalizing World - Some Policy Dilemmas,' organised by the State Planning Board, he said, "RBI's primary goal is to maintain the value of the country's currency. In other words, to control inflation," "This task assumes greater importance in a democratic country. Inflation is undesirable not only for theoretical reasons but also for the fact that it means real hardship to a large number of common people," he said.

No democratically elected government could afford to have inflation, he added. “We have to work hard to keep ourselves on the path of high, inclusive and sustainable growth," he said. The world now finds itself facing an economic slowdown. It has already assumed the character of a recession in some areas. Problems were being faced in the Euro zone, particularly Greece, Italy and Spain with manufacturing showing signs of slowdown even in strong countries like Germany and the Netherlands. "The US economy still has a high unemployment rate of more than eight per cent. The Chinese GDP growth rate is down by about two per cent. The GDP growth rate for India, which had reached a high of over nine per cent a few years ago, is likely to be below seven per cent this year," he said and suggested the RBI and the Centre to act together to overcome this crisis.