India will take additional fiscal consolidation measures by the end of October to boost growth, the country's finance minister said, adding he expects the central bank to take more "supportive measures" in its next policy review.
The Reserve Bank of India left interest rates unchanged but cut the cash reserve ratio for banks on Monday, saying the primary focus of monetary policy remains fighting inflation, days after the government unveiled a spree of reforms to boost growth and improve its fiscal position.
"I am very confident that between now and October 30, since the government is expected to take a number of additional policy measures and also lay out the path of fiscal correction, the response of RBI on October 30 will be far more supportive of growth," P. Chidambaram, the finance minister, told reporters on Monday.
Copyright Thomson Reuters 2012
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