Higher rates may affect the industrial output which is already lagging.
Industrial growth during the Apr-Jan period this fiscal stood at 8.3%.
Food inflation is largely driven by supply side pressures, RBI Governor said.
It is a strange coincidence that RBI’s last quarterly monetary policy review this fiscal and EGoM meet on food falls on March 17th.
Slow industrial growth and widening fiscal deficit are prompting the policy makers to take a re-look at its policy of monetary tightening to contain rising prices.
Inflation rose marginally to 8.31 percent for the month ended February from 8.23 percent in the previous month, putting pressure on the Reserve Bank to raise interest rates when it reviews the monetary policy later this week.
Day in Pics: 29th August
August 29, 2014
Famous Ganesh Pandals in Mumbai