Finance Ministry expects RBI to take monetary measures to help tame inflation

Finance Ministry expects RBI to take monetary measures to help tame inflation The Finance Ministry today, 21 June 2008, said it expects the Reserve Bank of India (RBI) to take monetary measures to help tame the inflation, which soared a 13-year high of 11.05% early this month due to hike in retail prices of petrol and diesel. Finance Secretary D Subba Rao said the inflationary pressures are likely to continue for next few months because of base effect Rao said the RBI Governor Y V Reddy had detailed discussions with Finance Minister P Chidambaram and later met Prime Minister Manmohan Singh. The government had yesterday, 20 June 2008, indicated stronger measures on demand and monetary sides. Addressing the media, Chidambaram had said these are difficult times. The government is aware of difficulties... Naturally, we will have to look at stronger measures on demand and monetary sides...We will try to address to best of our abilities the demand and monetary sides and try to improve supply side also.