‘RBI inflation talk is verbal intervention’

RBI?s recent talk on higher food inflation being a matter of concern and need for appropriate policy measures to prevent high inflation from being entrenched should be seen as ?verbal intervention to establish monetary policy ground rules,? Barclays Capital said on Tuesday.

October 6, 2010 00:46 IST

RBI?s recent talk on higher food inflation being a matter of concern and need for appropriate policy measures to prevent high inflation from being entrenched should be seen as ?verbal intervention to establish monetary policy ground rules,? Barclays Capital said on Tuesday. ?Even if the trigger for inflation is from supply side, its persistence necessitates monetary policy responses to bring inflation rate back to its trend and anchor inflationary expectations,? Deepak Mohanty, executive director RBI said in a speech delivered at Chennai Sep 28.

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