RBI should raise rates to contain inflation: IMF paper

The Reserve Bank may consider raising interest rates to bring down the persistently high inflation on a durable basis, suggested IMF working paper.The WPI inflation dropped to a 5-year low of 3.74 per cent in August, while the retail inflation stood at 7.8 per cent. The paper said since inflation is mostly backward looking, monetary policy has to maintain a tight stance for a prolonged period of time.


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