Prime Minister?s Economic Advisory Council chairman C Rangarajan said he wasn?t sure if the Reserve Bank of India, which has maintained a tight monetary policy for over two years, would go for a rate cut even in its April review.
?I?m not sure what will happen as it would depend on the inflation number for March. But during the course of the year, there is a possibility (of rate cut by RBI),? he told MK Venu in an interview for Rajya Sabha TV.
Rangarajan believes the 6.5% inflation rate projected for 2012-13 is achievable even with the excise duty hike and the likely increase in diesel price, but feels that a tolerable level will be still lower.
Headline inflation firmed up to 6.95% in February from a year earlier from 6.55% in January. Rangarajan said manufacturing inflation might come down further over the next one or two months, but said it was likely to stay at that level during the rest of the fiscal.