Fore Quote

fe Bureaus
Posted: Monday, Nov 02, 2009 at 0003 hrs IST
Updated: Monday, Nov 02, 2009 at 0003 hrs IST

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: We are responding in a highly uncertain situation, which is also determined by global sentiment

D Subbarao, RBI governor

Our inflation pressures are more acute than those of other countries. At the same time, we recognise that supply-side pressures, especially food prices, have driven inflationary pressures. We evaluated to what extent monetary policy will rein in inflation or anchor inflationary expectations. And the cost on the other side will be that growth impulses might be hurt. That’s the policy dilemma, said Subbarao in an interview with FE, when asked about RBI’s dilemma over growth and inflation

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