RTTNews - Reserve Bank of India (RBI) Deputy Governor K.C. Chakrabarty said that the apex bank was facing the challenge of keeping inflation under control as food prices were spiraling. He said that the bank was concerned with food price inflation around 10% and was looking at reducing inflation.
While addressing at members of the Institute of Banking, he discussed many issues ranging from drought to rates of interest and government borrowings. He was optimistic of recording over 6% annual growth. He said that drought would impact the GDP.
Chakrabarty ruled out any further reduction of interest rates, but the RBI could reverse its stance if the drought-induced inflationary prices went out of control. He admitted that there would be some pressure on interest rates due to huge borrowings by the government.
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