Inflation in India could not be controlled without sacrificing economic growth, the Reserve Bank of India (RBI) Governor, Dr. D Subbarao, said on Thursday.
The central bank should be sensitive to the problems of poor due to high inflation while deciding on key policy rates, he said while delivering the K Obayya Memorial lecture in Hyderabad.
Dr. Subbarao said there was criticism from corporates on not reducing rates. The RBI's monetary tightening did not reduce inflation but instead chocked growth, according to some India Inc. captains.
"I have regards and sympathy for corporates. But I need to be sensitive to the voices of hundreds of millions, whose voices are not heard in English newspapers," Dr. Subbarao said.
There has been a growing clamour for aggressive monetary easing from various sections in the wake of a sharp deceleration in the domestic economic growth even as inflation continues to be elevated.
However, the RBI has flagged concerns over widening fiscal deficit, suppressed inflation in petroleum products and rising consumer inflation in defending its approach towards rates.