The Reserve Bank of India (RBI) will only reverse its anti-inflationary stance if inflation falls below 7%, governor Duvvuri Subbarao said on Wednesday in a conference call with analysts.
The RBI raised interest rates on Tuesday for the 13th time since March 2010, and signalled that the hike could be the last in a tightening cycle that has put it at odds with global peers more concerned about weak growth.
Wholesale annual inflation was 9.72% in September, its 10th straight month above 9% and highest among the BRIC grouping that includes Brazil, Russia and China. Inflation in India is expected to start easing by the end of 2011 as the impact of the RBI's tightening takes hold and growth slows.
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