Rupee fall adding to inflationary pressures: RBI

Rupee fall adding to inflationary pressures: RBI
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First Published: Fri, Dec 09 2011. 11 42 AM IST

Updated: Fri, Dec 09 2011. 11 42 AM IST
Kolkata: The fall in the rupee was adding to inflationary pressures in the economy, the Reserve Bank of India’s governor Duvvuri Subbarao said on Friday.
A depreciation in the rupee raises import costs, particularly oil imports, which comprises two-thirds of the country’s import bill.
RBI faces a challenge in maintaining the right balance between supporting growth and maintaining price stability, Subbarao said.
The RBI will meet on 16 December for its rate setting meeting and is widely expected to hold rates.
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First Published: Fri, Dec 09 2011. 11 42 AM IST
More Topics: RBI | Rupee | D Subbarao | Banks | Interest rates |