New Delhi, February 05: Finance Minister Pranab Mukherjee on Friday said steps had been taken to tame inflation but the government had no magic lamp to bring it down immediately.
“You cannot expect that there is any magic wand or like Alladin’s magic lamp that you rub it and your problem is solved,” Mr. Mukherjee told reporters here.
He said the Reserve Bank had taken steps, including tightening of the monetary policy, to control inflation.
In its third quarterly monetary policy review on January 25, the RBI increased both short term lending (repo) and borrowing (reverse repo) rates by 25 basis points to mop up excess liquidity from the system.
Besides, the government also took steps such as banning exports of onion and abolished duty on its imports.
On an annual basis, the prices of onion rose by over 130 per cent in the third week of January, although recently they have moderated.
–PTI–