Reserve Bank Governor Y V Reddy today admitted that inflationary pressures have turned to be more than the expectation and indicated that some steps may be taken in the forthcoming annual credit policy to rein in soaring prices. "We anticipated some inflationary pressures but they turned out to be more. We have to see that the aggregate demand management is consistent with supply side initiatives," Reddy said in an interview to a private news channel .In terms of detailed analysis, he said, the RBI is holding a meeting of its Monetary Policy Advisory Committee. "We expect to make announcement on 29th (of April)," he said."Definitely, the level of inflation is unacceptable to us. It is higher than our tolerance limit," he said.The regulator is slated to come out with its annual credit policy on April 29, which many believe would tighten money supply to tame the inflation rate that soared to 40-month high of 7.41 per cent towards the close of last fiscal.Speaking at the World Leaders Forum in New York earlier, Reddy said India has, by and large, experienced benign inflationary conditions averaging around 5.2 per cent since 2004-05.However, presently both the domestic output and prices were under pressure due to recent global developments with regard to the prices of food, fuel and metals, and the turbulence in the financial markets, he said. Meanwhile, the government has taken a host of initiatives, including scrapping of duty on various edible oils and banning import of non-basmati rice and pulses to contain inflation.
