American economist and Nobel laureate Andrew Michael Spence today expressed the hope that the Reserve Bank of India (RBI) would take steps to bring inflation down to its comfort level.
"High inflation in India is a hard problem.I have huge respect for RBI. I think RBI will take steps to bring inflation down to its comfort level," Spence, who is recipient of the 2001 Nobel Prize for economics, said at an event here while replying to a question on high inflation in India. RBI's inflation comfort level is from four-five per cent.
Costlier food items, including vegetables, had pushed the October wholesale inflation to 7 per cent, the highest in current financial year, while retail inflation in October was 10.09 per cent.
Inflation worries had forced the Reserve Bank to continue its firm stance and hike the short-term lending (repo) rate by 0.25 per cent in the first full policy unveiled by new RBI Governor Raghuram Rajan last month who had increased the repo rate by 0.25 per cent to 7.75 per cent.