Following are comments from new Reserve Bank of India (RBI) Governor Duvvuri Subbarao at his first news conference on Tuesday after taking over from Y.V. Reddy on Sept. 5.
`The current high level of domestic inflation reflects a combination of supply-side pressures as well as demand-side factors.
`However, the present inflation is largely a global phenomenon and is being driven by key international commodity prices, especially of crude oil, metals and food. These external pressures are being exacerbated by strong domestic demand pressures.
`Dampening demand and anchoring inflation expectations has been the logic behind Reserve Bank`s monetary stance.
`For sustained economic growth, it is essential that inflation and inflation expectations be contained.`
(The RBI has said it aims for wholesale price inflation to fall to about 7 per cent by the end of the fiscal year in March 2009)
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