Mumbai: Union Finance Minister P Chidambaram today (Aug 28, 2004) said inflation, that has touched 7.94 per cent, would moderate and asked people to be patient.

"There are 3-4 factors for the rise in inflation, including excess liquidity and shock of oil prices, and it (inflation) will moderate," he told newspersons after addressing the annual general meeting of the Indian Banks Association in Mumbai.

"We have no control over oil prices. We have taken fiscal steps and hopefully the performance of various sectors will reduce inflation in the coming weeks," he added.

On interest rates, the Finance Minister said, "We will like them to be stable as stated by the Reserve Bank Governor Y V Reddy."