Stimulus exit to continue: Subbarao

Days after surprising the market by upping its short-term rates, Reserve Bank of India governor D Subbarao on Wednesday said the central bank would continue its exit from the monetary stimulus to check high inflation and ensure sustainable economic growth.

“If you have high inflation, you cannot have sustainable growth... it is better to take action now and continue the exit strategy... in the near term, we may have to sacrifice growth. (But) RBI believes that it was necessary to achieve sustainable growth,” Mr Subbarao said.