RBI fully geared to tackle inflation: Reddy

Concerned over ballooning inflation, the Reserve Bank on March 31 hinted at tighter monetary measures in its forthcoming credit policy, saying it was in full readiness for appropriate action to contain prices. Inflation is unacceptably high. We are very concerned and we are in full readiness to take appropriate action to contain inflation, Reserve Bank Governor Y V Reddy said, a month ahead of the credit policy, to be announced on April 29.Inflation spiralled to 6.68 per cent, much beyond the RBI's comfort level of five per cent, prompting Finance Minister P Chidambaram to stress that the government would take all measures, monetary, fiscal and supply side, to combat it. Attributing the sudden spurt in inflation to a surge increase in prices, mainly of food, fuel and metals, Reddy said that some inflationary pressures were expected when the central bank reviewed its monetary policy in January.