Amid rising food inflation, the Reserve Bank of India (RBI) today said it will take "prompt action" if it felt the price rise is due to demand factors.
"We have no evidence that food inflation is due to demand related factors. The moment we feel that demand is also playing a role, RBI will take prompt action," RBI Deputy Governor K C Chakravarty told PTI.
In the context of food inflation he said, the apex bank did not have monetary response as long as the rise in prices was was due to supply related factors.
Food inflation rose to over 17 per cent in the third week of November from 15.58 per in the previous week.
A day ahead of the meeting of its central board of directors in Kolkata tomorrow, he added that "the present monetary stance will continue till the RBI feels that it should be changed".
On asset price inflation (rise in prices of assets like real estate bonds etc), he said was also not due to demand-related factors.
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"In one or two cases, we felt that demand played a role as in the case of real estate for which RBI had tightened the policy. If needed, RBI would do more," he said.
To another query, he said there was enough liquidity in the system.
Chakravarty was here to inaugurate a customer service point of SBI.