RBI chief: budget should soften inflation

REUTERS - India's recent budget should have a softening effect on inflation, Reserve Bank of India (RBI) governor Duvvuri Subbarao said on Wednesday.

"Given the circumstances, I think it's (the budget) very measured and responsible," he told students in London.

"If he (Finance Minister P. Chidambaram) delivers on that, from a central bank perspective, there'll be some softening impact on inflation," Subbaro said.

He said earlier that Indian inflation was still high and should be reduced and held in a range of 4 to 6 percent.

(Reporting by Carolyn Cohn; Editing by Ruth Pitchford)