RBI governor says inflation unexpectedly high

March 31st, 2008 - 10:05 pm ICT by admin  

Mumbai, March 31 (IANS) Reserve Bank of India (RBI) Governor Y.V. Reddy Monday said the inflation rate was unexpectedly high and the central bank “if necessary after due assessment, will take immediate action to contain it”. Reddy, in an impromptu talk to the media at the state government headquarters, said the apex bank was really concerned about the rising prices. “It is connected to the rise in the prices of oil, metal and food grains,” he said.

“We had anticipated that there would be an inflation. But we had not anticipated that it would go so high. The inflation turned out to be more than what we had anticipated when we were declaring the monetary policy. However, if need arises we will be taking action but only after due assessment,” he added.

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