Monetary steps may be warranted: RBI

Monetary action may still be warranted from the central bank to anchor inflation expectations in face of sustained high food inflation,the Reserve Bank of India RBI Governor D. Subbarao said in a speech on Tuesday in Hyderabad.

The Reserve Bank of India has raised rates 13 times since early March 2010 to stamp down on stubborn inflation largely driven by high food prices. But it has hinted it could hold rates steady in December review and stay on hold if inflation remains within its projected trajectory.

India8217;s food price index rose 10.63 percent and the fuel price index climbed 15.49 percent in the year to Nov. 5,government data released last Thursday showed.