RBI to take steps to contain inflation

Kolkata, Dec 21: The Reserve Bank of India (RBI) will take policy measures to contain inflation between five and 5.5 per cent till this year end, RBI Deputy Governor Rakesh Mohan today said.

"Inflationary expectations would be contained," he told reporters after an RBI Central Board meeting, attended among others by Governor Y V Reddy.

Mr Mohan said as as mentioned in the Mid-term Policy Review, inflation would be kept within five to 5.5 per cent through certain policy measures.

In reply to a question on liquidity, the Deputy Governor said there was temporary excessive tightness in the market at the moment.

" A certain amount of liquidity was expected to be sucked out of the system following the recent hike in the cash reserve ratio(CRR)," he said.

The total liquidity in the system ranged between Rs 80,000 crore to Rs one lakh crore in the last one year, he said.

UNI