RBI: need to calm nerves on inflation

Enlarge Photo Reserve Bank of India Governor Yaga Venugopal Reddy gestures during a meeting with top bankers...

Fri, Jul 4 04:23 PM

MUMBAI (Reuters) - Volatile prices of food and commodity prices have pushed inflation higher and the most urgent priority for central bankers was to calm nerves on inflation, Reserve Bank of India (RBI) Governor Yaga Venugopal Reddy said in a speech.

"The most urgent and short-term priority for central bankers at the current juncture seems to be to calm the nerves about inflation or to anchor inflation expectations, with an implicit recognition that a somewhat elevated headline inflation in the short-term may be difficult to avoid," Reddy said in a speech in Manchester on July 1.

The speech was released on Friday on the RBI's Web site: www.rbi.org.in

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