With RBI keeping interest rates unchanged, government today said it is looking forward to the central bank to support revival of growth and employment.In a statement, the Finance Ministry said it was encouraging that RBI has taken note of the structural change in the outlook for inflation."The government looks forward to the RBI supporting the revival of growth and employment," the statement said.Referring to the proposed new monetary policy framework, it said in the weeks ahead, government and RBI will work towards it.The framework would "help institutionalise the gains achieved on the inflation front, so as to reduce inflationary expectations and further support the revival of investment and growth", the ministry added.Earlier in the day, RBI Governor Raghuram Rajan said talks with the government have progressed well and the details will be announced soon.The new monetary policy framework involves setting of a formal inflation target and accountability to deliver on the same. The RBI has set the inflation target for January 2016 and beyond at 4 per cent, plus or minus 2 per cent.In its policy review, the RBI said "if the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle".RBI today kept interest rates unchanged for fifth time in a row and the repo rate continues to be at 8 per cent while the cash reserve ratio has also been retained at 4 per cent.On the inflation trajectory, Rajan said he expects it to ease further and average at the 6 per cent."Over the next 12-month period, inflation is expected to retain some momentum and hover around 6 per cent, except for seasonal movements, as the disinflation momentum works through," he said after his bi-monthly review of the monetary policy.On her part, SBI Chairperson Arundhati Bhattacharya said that interest rates are likely to remain unchanged after RBI's status quo.ICICI Bank chief Chanda Kochhar said that "the statement that a change in monetary policy stance is likely early next year if the current positive trends continue is very welcome.""The results of government actions to energise investment activity should start playing out in the coming months. As this happens and interest rates moderate, we should see an improvement in growth going forward," she added.Economic growth slowed to 5.3 per cent in the second quarter of current fiscal, from 5.7 per cent recorded in April-June quarter.(PTI)
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