The Reserve Bank of India is expected to raise repo and reverse repo rates by 25 basis points in it's first policy review for 2011. In an exclusive interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, Ajay Shah senior fellow at the National Institute of Public Finance and Policy (NIPFP) says that he is in favour of fiscal tightening to deal with inflation. "In fact, both monetary policy and fiscal policy should be used to get the economy back on track."
The current inflation levels are unacceptable, according to him and that a series of rate hikes by RBI will be required to tame it. Below is a verbatim transcript of Ajay ShahDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
