Govt, RBI steps on inflation to show impact in few weeks: FM
FM P Chidambaram expresses confidence that RBI's monetary policy in tandem with fiscal measures announced would have an impact on inflation.business Updated: Apr 29, 2008 14:48 IST
Finance Minister P Chidambaram on Tuesday expressed confidence that RBI's monetary policy in tandem with fiscal measures announced by him in Parliament would have an impact on inflation and held out the promise of more administrative measures.
The 25 basis points hike in CRR by the RBI, the steps taken in the last three weeks on the food front and the measures announced on Tuesday together would have an impact on the price situation, he told reporters after passage of the Finance Bill in Lok Sabha.
The duty changes announced on Tuesday would have a revenue implication of Rs 1,500 crore, while those announced between the Budget and now would have an impact of Rs 4,840 crore.
"The food situation has improved in the last two-three weeks. Let us see how these measures come together and impact inflation," he said.
"We are ready with a set of administrative measures... We will discuss these measures in the next few days," he said.
Asked how these measures would impact the price situation, Chidambaram said: "Let's see. All these measures are intended to moderate inflation."