March 22, 2010 6:17 PM

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Time of recent monetary tightening right: RBI

The Reserve Bank today said the timing of its recent monetary tightening is right andinflation will ease in coming months, subject to normal monsoon and stable world oil prices.RBI Deputy Governor K C Chakrabarty told reporters on the sidelines of a function in Bangalore today that the wholesale price index-based inflation, which neared double-digit level in February, has probably peaked and was likely to decline as the country expected a good winter crop and drop in oil prices.The apex bank had on Friday raised its key short-term borrowing and lending rates by 25 basis points to 3.5 per cent and 5 per cent respectively to tame inflation, which rose to 9.89 per cent in February from 8.56 per cent in January.The RBI had projected inflation to be 8.5 per cent by this fiscal-end.

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