Sep 16, 2010
RBI's first mid-quarter policy review is scheduled for today by noon.
As the overall inflation is still hovering around 10 per cent, economists also expect the RBI to increase the policy rates to tame price rise.
"I am worried...I have suggested to the RBI to take whatever monetary measures needed to keep prices down," Mukherjee had said yesterday while addressing the AGM of the Calcutta Chamber of Commerce.
Experts said it may further tighten its policy rates to tackle rising inflation, especially food prices, with strong July industrial production numbers providing confidence that the growth won't be impacted by the move.
The RBI has already hiked short-term lending (repo) and borrowing (reverse repo) rates thrice this fiscal, including twice in July. While the repo rate currently is 5.75 basis points, reverse repo is 4.50 basis points
Industrial growth figures for July exceeded expectations by accelerating to 13.8 per cent, from 7.2 per cent in the same months a year ago. Manufacturing grew by 15 per cent in July against 7.4 per cent a year ago.
