Monday, November 29, 1999

RBI deputy: inflation not beyond our estimate

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An inter-meeting policy rate hike will depend on volatility and wholesale price-based inflation is not beyond the Reserve Bank of India's estimates, a deputy governor of the central bank said on Thursday.K.C. Chakrabarty did not say what he meant by volatility, but his statement came in response to a question on accelerating inflation in recent months and data pointing to a strong growth momentum."If the volatility is more, if things change fast; yes, there will be more measures, it depends on how the environment is," he told reporters on the sidelines of a conference when asked about double-digit inflation.India's headline inflation unexpectedly accelerated in May, heightening expectations the RBI would raise rates before its scheduled July review despite concerns over Europe's debt crisis.The benchmark 10-year bond yield briefly rose 1 basis point after the comments to 7.56 percent. It had closed at 7.59 percent on Wednesday.(Reporting by Suvashree Dey Choudhury and Neha D'silva)

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