It was forwarded Wednesday by planning Commission deputy chairman Montek Singh Ahluwalia that there is a dire need for Reserve Bank of India to tactfully consider resuming to normal monetary policy, an indication the government may be giving it the green light to raise interest rates next month.

Though he did admit that inflation needs to be brought down; however he dismissed concerns of a prolonged period of double-digit inflation.

He said that he hopes for inflation to fall down in the next two months. Till now, government officials highlighted the vitality of making sure that rebounding growth is entrenched before the RBI begins increasing rates.

There is a huge chance for the central bank to hike it chief lending rate by 25 to 50 basis points on April 20 when it reviews monetary policy as it continues tightening its stance.