'Inflation within RBI's estimates'

Reserve Bank of India deputy governor K C Chakrabarty said on Thursday the policy measures will depend upon the changing economic environment and the current inflation is still within RBI estimates.

"If things change fast, there will be more measures depending upon the environment," Chakrabarty said.

Asked whether the current inflation is out of RBI's estimates, Chakrabarty said, "It is not a surprise. . .it is not out of RBI's estimates."

The wholesale price-based inflation had shot passed 10 per cent in May putting more pressure on the Central Bank to hike the policy rates.

Referring to RBI's Wednesday's measure to buy back government securities, he said that the measure was aimed at easing the liquidity conditions in the system.