Mumbai, July 26: Hinting at a hike in its key rates tomorrow, the Reserve Bank today said it would continue exiting from its easy money regime to check double-digit inflation, while ensuring stable economic growth.
“Given the risk to inclusive growth from high inflation, the monetary unwinding that started in October, 2009 should continue till inflation expectations are firmly anchored and inflation is brought down,” RBI said in its macroeconomic report.
The Reserve Bank is set to unveil its quarterly review of the annual monetary policy tomorrow. It is widely expected to hike its short-term lending and borrowing rates (repo and reverse repo) by at least 0.25 per cent each to tame inflation, which was 10.55 per cent in June.
“The major policy concern… would be to contain inflationary pressures and anchor inflationary expectations,” the central bank said.
–Agencies