The finance ministry today said the Reserve Bank’s monetary tightening has had only a limited success in lowering inflation, which is hovering near the double-digit mark by moving up to 13-month high of 9.78 per cent in August.
“In India, the policy stance has had to change from being accommodative to one of aggressively combating inflation. The benchmark short-term policy rate was raised in quick succession from March, 2010,” Department of Economic Affairs Secretary R Gopalan said here.
“While this tightening has been able to anchor inflationary expectation up to a point, it has had limited success in lowering inflation rates to acceptable levels,” he added.
RBI has raised interest rates 11 times in the last 18 months to tame inflation.
From: http://ping.fm/PhXBc
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