RBI to take new anti-inflation steps

The Reserve Bank of India is likely to come out with a new policy measure to rein in inflation in its annual monetary policy review as high inflation remains a "matter of concern" for the apex bank.

The Reserve Bank of India (RBI) is likely to come out with a new policy measure to rein in inflation in its annual monetary policy review as high inflation remains a "matter of concern" for the apex bank.

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"We will have our own policy very soon. Inflation remains a matter of concern and we need to evaluate and underline the inflationary pressures," RBI deputy governor Shyamala Gopinath told reporters on the sidelines of a programme organised by the apex bank on Monday.

She said that monetary policies required about 12 to 18 months to have an impact on inflation.

"Once a policy is in place, it will take around 12 to 18 months to work. It is better that different mechanisms work in a calibrated manner," she stated.

Gopinath said that the current inflationary pressure had been a result of high inflation from the food and the non-food manufacturing sector.

"We will have to mark these trends and then ensure that there is no demand and supply mismatch," she added.