<p>"... containing inflation will have to be the predominant objective of monetary policy in the near term," the Reserve Bank said in its macroeconomic review released a day before the third quarterly review of the policy.<br /><br />The review further said that upside risks of inflation have increased and it could endanger the growth objective and also amplify risks to inclusive growth.<br /><br />The economy grew by 8.9 per cent in the first half of the current fiscal, but inflation remained at a high level of 8.43 per cent in December, led by high food prices.<br />The food inflation for week ended January 15 was 15.52 per cent after touching a high of 18.32 on December 25, 2010.<br /><br />The central bank raised key short-term lending (repo) and borrowing (reverse repo) rates for six times in 2010 to tame inflation.<br /><br />The quarterly monetary policy, to be released tomorrow, is expected to balance the need for containing inflation and promoting growth.</p>
<p>"... containing inflation will have to be the predominant objective of monetary policy in the near term," the Reserve Bank said in its macroeconomic review released a day before the third quarterly review of the policy.<br /><br />The review further said that upside risks of inflation have increased and it could endanger the growth objective and also amplify risks to inclusive growth.<br /><br />The economy grew by 8.9 per cent in the first half of the current fiscal, but inflation remained at a high level of 8.43 per cent in December, led by high food prices.<br />The food inflation for week ended January 15 was 15.52 per cent after touching a high of 18.32 on December 25, 2010.<br /><br />The central bank raised key short-term lending (repo) and borrowing (reverse repo) rates for six times in 2010 to tame inflation.<br /><br />The quarterly monetary policy, to be released tomorrow, is expected to balance the need for containing inflation and promoting growth.</p>