Finance secretary calls for alignment of fiscal and monetary policies to control inflation

economictimes.indiatimes.com February 4, 2025, 08:00 PM UTC

Finance Secretary Tuhin Kanta Pandey stated that fiscal and monetary policies must align to control inflation and support sustainable growth. He emphasized the importance of a non-inflationary budget ahead of the Reserve Bank of India's Monetary Policy Committee meeting. Pandey noted that the government aims to reduce the fiscal deficit to 4.4% for 2025-26, down from 4.8%. He mentioned that the Monetary Policy Committee will decide on potential interest rate cuts to stimulate economic growth. Regarding the falling rupee, which hit a record low of 87.29 per dollar, Pandey said both the government and the Reserve Bank of India are monitoring the situation. He acknowledged that a weaker rupee could impact inflation but also enhance export competitiveness.


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