RBI needs to take monetary action: Sen

RBI needs to take monetary action: Sen

New Delhi: The Reserve Bank of India (RBI) will have to further tighten monetary policy on 20 April if prices continue to rise, chief statistician, Pronab Sen, said on Wednesday. He also said the wholesale price inflation rate in March is likely to be higher than in the previous month, partly due to base effect.

Sen added that RBI’s decision in March to raise the repo rate and reverse repo rate by 25 basis points each have had no major impact on inflation. Sen said non-agricultural inflation was still accelerating but consumer price inflation was expected to come down below 10% by May.

The chief statistician said industrial output growth was expected to remain between 15-16% in February and March compared to 16.7% growth in January.

Prime Minister Manmohan Singh is slated to meet a core group of chief ministers on Thursday to discuss steps to tame rising prices.