Seeking to contain runaway inflation, the Reserve Bank of India on Tuesday said that it may take action even before the scheduled monetary policy review next month, a move that could result in higher interest rate.
Inflation entered double digits for the first time in nearly 20 months at 10.16 per cent in May, as per provisional figures. However, as per revised numbers, inflation has already crossed 11 per cent as of March 2010.
“High inflation is a concern. Inflation is always a concern and will remain a concern (for RBI). At some stage monetary policy has to address the issue,” RBI deputy governor, Mr K.C. Chakrabarty, told reporters on the sidelines of a function here on Tuesday.
Asked whether the monetary action can be taken before the next policy review scheduled for July 27, the deputy governor said, “Absolutely”. — PTI