Rate rise won't hurt growth, says BoI CMD

The Reserve bank of India’s rate hike was on expected lines, Bank of India Chairman and Managing Director Alok K Misra said on Thursday.

“In view of the rise in inflationary expectations, the measures announced will help to tackle demand-side pressures on inflation. The revision of the inflation target from seven per cent to around eight per cent for March 2011 is pragmatic in view of the global political uncertainty, the rise in core inflation at home and insecurity on the commodities and energy front,” said Misra.

“The Reserve Bank of India’s measures show a calibrated approach to contain inflationary expectations. At the same time, it would be non-disruptive to the growth process,” he said.