India central bank deputy says financial imbalances need to be tackled

Wed Aug 14, 2013 12:59am EDT
 
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MUMBAI (Reuters) - Central banks should tackle financial imbalances even if it means sacrificing some economic growth, the Reserve Bank of India deputy governor Anand Sinha said in a speech on Wednesday.

India's central bank has recently unveiled a slew of measures including draining cash and raising short-term interest rates, sparking concerns about the impact on economic growth.

Sinha Also said macroprudential regulations and monetary policy should move in the same direction.

(Reporting by Shamik Paul; Writing by Subhadip Sircar; Editing by Rafael Nam)

 
The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai July 30, 2013. REUTERS/Vivek Prakash