Mumbai: The Reserve Bank might have to resort to rate hikes to combat inflation, Deepak Parekh, chairman of private sector financial institution HDFC Bank, said today.

He was speaking to reporters on the sidelines of Indian Merchants Chamber function here.

Inflation has been rising steadily in the last two months and has now breached the six per cent mark. Inflation at present stands at 6.68 per cent, highest in 13 months.

The Reserve Bank had earlier indicated that its comfort level vis-a-vis inflation was around the five per cent mark.

While it might be too premature to comment on what the RBI might do in its annual policy slated for April 29, Parekh said it was unlikely that a cash reserve ratio (CRR) hike might be effected before the announcement of the policy next month.
Source : PTI