RBI's Reddy on India's financial sector

YV Reddy, governor of the Reserve Bank of India, said "The critical task before the public policy, in general, and Reserve Bank of India, in particular, is to strengthen the structural factors in the economy but determinedly moderate the cyclical and excessively volatile elements of the economy."

The speech was entitled "Glimpses of Indian Economy and its Financial Sector" and was delivered at the Central Bank of Russia on 2 July.

Reddy said, "In assessing short-term prospects, say for 2007-08, it

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