Signalling hike in key policy rates when it reviews monetary stance tomorow, the Reserve Bank of India (RBI) today said that the inflation still remained above its comfort level and elevated food price is a matter of concern.RBI said in its report on macroeconomic and monetary developments, ahead of tomorrow's second quarter review of FY'11.The apex bank also said that despite a good monsoon food price continues to remain, as price pressures have amplified for certain non-cereal items like milk, eggs, fish and meat whose output is less responsive to monsoonThe bank said its objective was to maintain growth and moderate inflation — a hint that a nominal hike may be on the cards tomorrow.The report also said that uncertain global outlook, and the dominance of supply rigidities in certain sectors that impart rigidity to the inflation path, pose greater challenges for monetary policy in its objective of anchoring inflationary expectations without hurting growth.The central bank has raised the key rates five times so far this year.
News On AIR | November 1, 2010 8:49 PM
RBI expresses concern over rising inflation despite good monsoon