RBI defends policy status quo, says inflation level unacceptable

Under attack for not reducing interest rates, Reserve Bank Governor D Subbarao today said inflation at current levels is unacceptable and monetary tightening is required to ensure sustainable growth.
“We want to support growth in the medium term with low and stable inflation, which is possible only with tightening, but inflation at the current level is not acceptable,” he said at a function organised by the Indian Merchants’ Chamber here.

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