FSDC reviews financial stability and economic situation
The Financial Stability and Development Council (FSDC) headed by Finance Minister Pranab Mukherjee today reviewed general economic situation in the light of steep rate hike by RBI.
July 27, 2011 / 14:12 IST
The Financial Stability and Development Council (FSDC) headed by Finance Minister Pranab Mukherjee today reviewed general economic situation in the light of steep rate hike by RBI.
"We have examined the financial stability situation, reviewed the trends and understood each others view points on the fundamentals of economy," IRDA Chairman J Hari Narayan said after the meeting of FSDC."The major concerns were relationship between inflation and growth. We are confident that growth trend will continue", he said.The meeting was attended by all financial sector regulators including IRDA Chairman.The central bank raised the short-term lending (repo) rate by 50 basis points to 8% and the short-term borrowing (reverse repo) rate by a similar margin to 7% yesterday.He replied in the affirmative when asked if growth trend will remain despite rate hike.The central bank, in its quarterly review of the monetary policy, has also revised its fiscal-end inflation projection to 7% from 6% earlier. It has retained the growth project for the current fiscal at 8%.The FSDC is a high level body for coordination among regulators and looks at financial sector development, financial literacy, financial inclusion and macro-prudential supervision of the economy, including the functioning of large financial conglomerates. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
