The Reserve Bank of India (RBI) can argue its case strongly with the Central government as to why the inflation was not controlled at 4 percent, said experts
The RBI may also sound out the Central government as to the course of inflation as well as the reasons as to why it may be at the elevated levels
In India, the retail inflation rose to 7.41 per cent in September
Experts were of the view that a combination of global and local factors - geopolitical developments, crop production, reduction in crude oil production and the resulting price increase and depreciating rupee - are expected to heat up the prices
The RBI on its part is trying to contain inflation by increasing the repo rate — the rate at which it lends to the banks
The central bank has increased the repo rate by 190 basis points in recent times and the last one was by 50 basis points last month
The RBI Governor had said the communication with the central government is a privileged one and it will not made public by the Bank
Das also said there no legal stipulation on the frequency of the communication between RBI and the government