RBI to take apt steps to tame inflation: FM

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.

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.

"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.

The government drastically cut import duty on edible oils last month to curb its domestic prices.

"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.