The government and Reserve Bank have in the recent past unleashed a number of steps to curb inflation and money supply.
Only yesterday, RBI hiked the Cash Reserve Ratio by a half per cent to six per cent to control money supply in the banking system - a move to curb credit flow.
India’s central bank said it will react “swiftly” and use all policy tools to stem inflation that may derail record economic growth.
“The firming up of inflation bothers us,” Reserve Bank of India deputy governor Rakesh Mohan said in a speech in Mumbai on Tuesday. “It is a key concern for us in overall macroeconomic management.”