RBI move to help moderate inflation: FM
16 Jun 2011
The RBI, through a modest 25 basis point increase in its key lending rate, has sought to maintain an interest rate environment that moderates inflation and checks inflationary expectations, finance minister Pranab Mukherjee said today.
Reacting to the RBI's monetary policy announcement made today, Mukherjee said the move was on expected lines, as the core inflation hardened to 8.71 per cent in May 2011, from 7.93 per cent in the previous month.
Mukherjee said there was a need to have better price stability for sustaining growth in the medium term.
The finance minister also released a `Handbook on Disinvestment Through Public Offers', which, he said, would ensure uniformity and continuity over different issues and in evolving and strengthening the system.
He said the process of disinvestment of central public sector enterprises (CPSEs) through public offers is technical in nature and requires knowledge of not only the rules and regulations laid down by the market regulator SEBI and other concerned bodies, but also the various processes followed by the government.
The handbook has been prepared by the department of disinvestment of the ministry of finance.
He said the department of disinvestment has overseen 11 public offers in the last two financial years and has gained valuable insights into the entire process of public offers.
Mukherjee said the handbook is a step-by-step guide to the entire disinvestment process starting from seeking government approval to final listing on the stock exchanges. It will ensure uniformity and continuity over the different issues and at the same time help to evolve and strengthen the system, he said.