Inflation Pressure in INDIA

RBI Governor Y V Reddy said that after evaluating the emerging inflation scenario he had met the prime minister and the finance minister on Saturday for a detailed discussion, and the RBI 'will play its part in moderating and managing aggregate demand so that pressures on prices are not intensified.'
Emphasizing that RBI had been taking 'pre-emptive' measures to curb inflation, Reddy said besides hiking cash reserve ratio twice by 25 and 50 basis points, respectively, the apex bank also increased the rates for short-term lending to banks by 0.25 per cent after the government increased the domestic fuel prices on June 5.