MUMBAI: The Reserve Bank of India on Tuesday supported Finance Minister Pranab Mukherjee's budget proposals and said it would help in moderating inflation that is hovering at 6- 7%. " Food prices are going to play a role as we have some stabilisation and even softening, either because of monsoon in the short term or because of initiatives of the government made quite explicit in the budget that would also help to contain inflation...," RBI Deputy Governor Subir Gokarn said. Asked if the RBI has enough monetary headroom in the light of hardening global crude oil prices, he said, " space is the question of how prices itself evolves. I think its not a meaningful thing in terms of global crisis in which commodity prices remains so firmly and so rigid."
FPJ
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