New Delhi, Jul 27: Finance Minister Pranab Mukherjee today said the Reserve Bank's decision to raise short-term key rates will check inflation without hurting growth.
"I expect this policy will lead to further easing of inflation which already is going down and it should also keep us fully on track in terms of growth," Mukherjee told reporters inside Parliament complex.
In its first quarter monetary review, the central bank today raised short-term lending and borrowing rates by 0.25 per cent and 0.50 per cent respectively.
The increase in short-term lending rate (repo) to 5.75 per cent and short-term borrowing rate (reverse repo) to 4.50 per cent will be effective immediately.
"The monetary policy just announced by RBI is another calibrated step in the right direction."