RBI will review monetary policy if inflation persists



RBI will review monetary policy if inflation persists Kolkata: The Reserve Bank will review its monetary stance if inflationary pressure continues, Governor D Subbarao said on Wednesday.

"If inflationary pressure persists for a long time it can fuel inflationary expectations and monetary policy will have to take a nuanced view on this," Rao told reporters.

Admitting to a dilemma over price rise, he said, "Wholesale price index is quite modest, while consumer price index is quite high. Food inflation is 17.5 percent and there is dilemma in managing the current situation," Subbarao said after meeting Chief Minister Buddhadeb Bhattacharjee.

"The food price inflation engenders inflationary expectations," he said.

PTI