SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. Some growth sacrifice inevitable, a necessary price to be paid to rein inflation: D Subbarao

Some growth sacrifice inevitable, a necessary price to be paid to rein inflation: D Subbarao

31 Aug 2012 Evaluate

Dismissing the criticism of hawkish policy stance, Reserve Bank of India’s governor, D Subbarao, has said, “Some sacrifice of growth in inevitable, a necessary price we have to pay to rein inflation to acceptable levels. However, India’s central bank governor was quick to add that the “sacrifice of growth is only in the short term”. In the medium term, he said that, “a low and stable inflation is a necessary precondition for achieving India's growth prospects”.

On being under constant criticism for monetary policy stance, which is believed to be the major reason behind the slowing economy growth, that dipped near a decade low in March-April quarter, Subbarao cited that inflation due to this very tight policy stance, has been scaled down from 11% in 2010 to below 7% in July this year. India’s most aggressive central bank, after slashing key policy rates in April by 50 basis points to 8 percent has left the benchmark interest rates unchanged in light of growing pressure from the industry.

The wholesale price index (WPI), India's main inflation gauge, unexpectedly slipped at 6.87% for the month of July, its lowest since January 2010, as compared to 7.25% (Provisional) for the previous month and 9.36% during the corresponding month of the previous year, but still remained persistently higher above the RBI’s comfort level of 5-6%.

Meanwhile, the parliamentary standing committee on finance, which went into the reasons for high inflation and slowing Indian economic growth, in its reports, concluded that lack of co-ordination between the government and the Reserve Bank of India (RBI) as the major problem behind the slowing growth in Asia’s third largest economy.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×