RBI can act any time to deal with inflationary pressure

Reserve Bank Governor D Subbarao today said it can change policy stance at any time to rein in inflation based on the macroeconomic situation.

“Notwithstanding (the) scheduled quarterly and mid- quarterly reviews, we reserve the right to alter our policy stance at any time to respond to the evolving macroeconomic situation,” Subbarao said said at the Convocation function of Sambalpur University.

The statement assumes significance in the light of double digit food inflation and rising crude oil prices.

Earlier during the day, Prime Minister Manmohan Singh said the overall inflation would come down to seven per cent by the end of March on the back of steps being taken by the government.

“Food inflation has also been a cause of concern. But recently, the situation has improved and I expect the situation to improve further,” Singh said.

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