Inflation weighed on RBI's monetary policy decision: Pranab

Mukherjee said it was not necessary for the RBI governor to consult him before the mid-quarterly review of the credit policy.

High inflation numbers "might have weighed their (RBI's) decision making process. And normally in mid-quarter review, it is not necessary for the Governor to consult the Minister", Mukherjee told reporters here.

In the mid-quarterly policy review, RBI kept policy rates unchanged in view of rising inflation and global economic uncertainty, pulling down stocks markets sharply.

Besides, the central bank also kept cash reserve ratio (CRR) or the percentage of deposits that banks have to keep with RBI unchanged at 4.75%.

The Wholesale Price Index-based inflation had risen to 7.55% in May, from 7.23% in April. Besides, retail inflation also moved up to 10.36% in May, from 10.32% in the previous month.

RBI said the future action would depend upon on external factors, domestic developments and inflationary risks.

"Future actions will depend on a continuing assessment of external and domestic developments that contribute to lowering inflation risks," RBI said.

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