RBI to review its mid-year monetary policy today
The Reserve Bank has hinted at a hike in key rates in its mid-year policy review scheduled to announce today, saying that inflation is above the comfort level.
The central bank in its macroeconomic and monetary developments report released yesterday said that the Reserve Bank's policy stance is likely to be shaped by the dual goals of maintaining the growth momentum in an atmosphere of global uncertainty, while striving to moderate inflation further.
The overall inflation for September was at 8.62 per cent, much higher than RBI's acceptable level of 5-6 per cent. Food inflation, which is reigning in double digit for the past three months, is feeding the overall inflation numbers. Food inflation in mid-October stood at 13.75 per cent.
This year, the central bank has raised key rates five times, eventually aimed at taming public consumption but Finance Minister Pranab Mukherjee feels that inflation is still a "matter of concern” talking to reporters in New Delhi after his meeting with RBI Governor Mukharjee said that he has taken up the issue with the Reserve Bank.
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