RBI assessment on inflation fair, accurate: FM

Finance Minsiter P Chidambaram said there is pressure on prices; he sees monetary tightening taking effect. He said he is in broad agreement with the Reserve Bank Of India (RBI) Governor's monetary stance.

He said inflation will take some time to moderate. The growth in money supply has started to slowdown. He thinks RBI assessment on inflation is fair and accurate. 

He will see if more steps are needed to tame inflation.

“There is still pressure on prices and I have had a meeting with the Governor thereafter. We have to wait until monetary measures take effect. There is some tightening up of liquidity as seen from the call rate. So, if these monetary measures take effect, the Governor expects moderation over a period of time,” said P Chidambaram.