RBI to target inflation in next few months

Chennai, Feb 2: The Reserve Bank of India (RBI) has said that it will target inflation in next few months.

Speaking at an event here, RBI Governor Duvvuri Subbarao said, "It is the responsibility of the Reserve Bank to manage expectations about inflation and what we are going to do in the next few months is to target inflation."

He said, "It is important for the government to withdraw the stimulus and that the government and central bank would have to coordinate in withdrawing stimulus."

He reiterated that the economy is back to growth and added that the challenge is to accelerate momentum.

On Friday, Jan 29, the RBI lifted the cash reserve ratio (CRR) by a higher-than-expected 75 basis points and held key interest rates steady.

The central bank also raised its growth and inflation forecasts.

OneIndia News