Inflation will come down by December end: Montek Singh Ahluwalia
November 2nd, 2010 - 9:51 pm ICT by ANINew Delhi, Nov 2 (ANI): Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said the wholesale price inflation will come down by the end of December 2010.
Ahluwalia, who is also a noted economist, mentioned that the Government is taking several steps to tame down inflation.
“There was inflation in the market and it was problem. The government has taken many steps to control it. We hope that by December, the wholesale price inflation year-on-year will come down to a comfortable level,” said Ahluwalia.
“I already said that it will be six percent or a little higher, but the double-digit that persists right now will come down by December,” he added, while addressing the media persons on the sidelines of a conference on ‘Public Private Partnership in Transmission of Electricity’ here today.
Meanwhile, the Reserve Bank of India (RBI) today hiked its key short-term lending and borrowing rates by 25 basis points each with immediate effect to rein in inflation.
The short-term lending rate or repo-rate stands at 6.25 percent and the borrowing rate (reverse repo) at 5.25 percent.
The RBI has, however, left the Cash Reserve Ratio or the bank rate, which is the amount of cash that banks have to keep with the central bank to maintain prudential norms, unchanged at six percent.
“Inflation is not easy to control immediately. You can take very drastic steps, but those steps may have other damaging affects. So I think we are coming out of a year. Last year was drought here and it is not very easy to control inflation when you have a drought situation,” said Ahluwalia.
“This year is going to be a normal year. Once the food is in the market, I expect to see a much softer position,” he added. (ANI)
- RBI hikes short-term lending, borrowing rates by 25 basis points - Nov 02, 2010
- Rate cut will stimulate growth: Montek - Apr 17, 2012
- Inflation will come down to 7 percent by March: RBI - Oct 25, 2011
- Easing of rates depends on future inflation, growth: RBI - Jan 23, 2012
- India's Reserve Bank hikes key rates to tame inflation (Lead) - Jan 25, 2011
- India's central bank hikes rates to ease prices - Mar 19, 2010
- Soaring prices prompt India's central bank to hike key rates (Roundup) - Jan 25, 2011
- RBI keeps key rates unchanged as inflation outlook worsens (Lead) - Jul 31, 2012
- Inflation still a concern for RBI as rates left unchanged (Lead) - Mar 15, 2012
- Reserve Bank of India keeps rates unchanged - Mar 15, 2012
- India's central bank keeps key lending rates unchanged (Fourth Lead) - Jun 18, 2012
- Rate hike will hurt growth, feels India Inc - Jul 26, 2011
- RBI hikes key rates by 0.25 percent to curb inflation - Jan 25, 2011
- Petrol price hike to marginally push inflation up: RBI - Sep 16, 2011
- Banks expected to pass on cost savings to borrowers - Apr 17, 2012
Tags: bank of india, basis points, cash reserve ratio, deputy chairman, double digit, drastic steps, drought situation, media persons, montek singh ahluwalia, nov 2, planning commission, price inflation, prudential norms, public private partnership, reserve bank of india, reverse repo, several steps, sidelines, transmission of electricity, wholesale price