Finance Minister P Chidambaram said the Reserve Bank of India (RBI) will take appropriate steps to contain inflation, which had surged toan over three-year-high of 7.41 per cent by the end of March. | |
| "I am sure the RBI will take appropriate monetary measures," Chidambaram said in an interview in Washington. |
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| The central bank is widely expected to tighten its policy by either raising banks' cash reserve ratio or hiking short-term benchmark rates, or both, in its annual monetary policy on April 29.The finance minister said the government, would not hesitate totake steps. |
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| "We have taken fiscal measures... we will not hesitate to take more fiscal measures even if it means sacrificing some revenues that are badly needed for social sector expenditure," Chidambaram said. |
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| The government drastically cut import duty on edible oils last month to curb its domestic prices. |
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| "The third leg of the triangle is the supply side. But supply side responses are not immediate. Supply side responses to a situation of high demand and shortage can come only in the medium-term," he said. |
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