Interest rate hike on cards again-RBI

The Reserve Bank today said the option of going for another round of rate hike at its next mid-quarterly policy review in September do exist as inflationary pressure continues in the economy.

The present inflation rating is between 9% and 11% and It is further said the short-term target is to bring down headline inflation to 6% to 7% and further ease it to 3% to 4% in the medium-to-long term, the finance ministry and the RBI have already initiated a strong and tough economic measure to mitigate the onslaught of inflation through various fiscal and economical measures.