Mumbai: A senior apex bank representative stated that the monetary policy steps taken by the Central Bank have kept inflation prospect down that contributed to corporate performance.

Rakesh Mohan, RBI Deputy Governor said, “Monetary policy changes... reforms... in terms of instruments and also the use of some pre-emptive monetary policy measures as and when necessary... does seem to indicate that inflation has come down and more importantly, inflation expectations have come down and seem to remain well-anchored.”

At the FICCI-IBA Global Banking Conference, Mr. Mohan said that this has resulted to a large declination in nominal as well as real rates of interest and helped contribute to corporate performance of India Inc.

"Among very important causes for improved corporate performance in terms of profitability and growth is the handle we have been able to get on inflation expectations through monetary policy action," added Mr. Mohan.

He recalled that there was a huge noise and uneasiness among the community and the business segment when inflation was more than six per cent late last year and early this year.

For the week ended September 1, inflation came down to a 17-month low of 3.52 per cent because of cheaper minerals, fuels, and some manufactured products.