‘RBI may raise interest rates to tame price rise’

‘RBI may raise interest rates to tame price rise’

New Delhi: The Prime Minister’s Economic Advisory Council chairman, C. Rangarajan, on Monday suggested that the Reserve Bank of India (RBI) could reduce money supply and raise interest rate to tame the rising prices of food articles.

“If price decline does not happen in December, then early steps could be taken. RBI could increase interest rates...preferably could reduce liquidity by acting on CRR (cash reserve ratio)," he said.

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