RBI's policy reflects 'very balanced approach', says Shaktikanta Das

The Finance Ministry today said the monetary policy reflects a "very balanced approach" on the part of the Reserve Bank in promoting growth and managing inflation.

"Today's policy reflects a very balanced approach on RBI's part. The RBI's announcement is on expected lines. RBI has maintained a balance between its inflation focus and growth push. It is a balanced policy call," Economic Affairs Secretary Shaktikanta Das told ET Now today.

In its fifth bi-monthly policy statement for 2015-16, RBI has held policy rates and stuck to its GDP growth forecast of 7.4 per cent for the current fiscal.

"On the whole, it is a very balanced approach, especially given the Fed policy that is round the corner," Das said.

RBI has also said it sees retail inflation at 6 per cent by January 2016 and 5 per cent by March 2017.

Asked if there is room for further policy easing, Das said: "I would not like to talk about whether there is more room or not. Our target is to contain inflation. WPI continues to be in the negative territory. Consumer price index is around 5 per cent."

He said the government has been able to deal with a third consecutive poor monsoon, and those measures are now beginning to show results.

"New crops will come into the market in a month or month-and-a-half, but we still have to be very watchful about overall inflation," he said.

He said RBI has taken into consideration all necessary aspects, including a possible Fed rate hike later this month, while deciding on policy.

Das said the Indian economy is likely to grow at about 7.5 per cent this fiscal on the back of series of reform measures undertaken by the government.