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Indian inflation "inimical to growth"

2011-04-15
Indian inflation of around 9 percent is "inimical to growth", justifying the central bank's recent monetary tightening campaign. India's central bank chief said.
While modest inflation can help boost growth, rapid growth in price pressures requires tighter monetary policy, Duvvuri Subbarao, governor of the Reserve Bank of India,. Said during a speech at New York University.
"If inflation is below 6 percent , there's probably an argument that we can tolerant a bit of higher inflation , but when it is a around 9 percent, as it is (in India), we are way past the threshold," he said "There is no question, inflation is inimical to growth."

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