The Governor of Central Bank of India, Duvvuri Subbara emphasizes on the need to reduce the pace of economic growth so as to bring down the level of ever increasing inflation in the country.

Further Duvvuri Subbara appreciates the economic strategy of India, which is either investing its cash into the nation’s economy or it is increasing exchange rates in the country to promote further economic development. He also emphasizes that it is only India among the countries like Brazil, Russia, China and South Africa, where price inflation is witnessed the most.

As per Subbarao, “In the short term you may have to sacrifice growth to generate an environment of rapid growth and steady inflation in the medium term. Some data show that 5 percent inflation is the threshold level, so at 9.4 percent we are far above the threshold level”.

The 10-year bonds of India has been falling this week, the bonds were expected to yield 7.6% on its maturity in April 2021. The Reserve bank of India had raised the repurchase rate by 11 times and the latest increase in the interest rates by 50 basis points to reduce the inflation. The whole-sale price index has also witnessed inflation by 9.44% in the month of June.