The Governor of Reserve Bank of India, D. Subbarao, has said that inflation could start to decline from the beginning of the last quarter of this fiscal. Though, the current level of inflation is at a lower level than its peak, still an inflationary level of 7.5 percent should be considered high.
Talking on the matter, Subbarao said, "We in the RBI are always managing balance between growth and inflation. Growth has certainly moderated to 5.3 per cent during the July-September quarter. At the same time, inflation at 7.5 per cent is still high." He further added, "We expect it (inflation) to trend down starting the fourth quarter of this fiscal."
The mid-quarter monetary policy review is scheduled to be released on December 18 this month. It will be based on the growth-inflation trajectory prevalent currently in the economy. Even though the inflation rate was high throughout the current fiscal year, RBI had not reduced policy rates in the previous mid quarter policies of this year . On this, Subbarao said, "Within the RBI we will see if we need to change our strategy. However, there is no commitment that we are actually going to change it."