With inflation reaching new highs, the Reserve Bank of India on Saturday said it will take 'measured' steps to contain the rise in price level and the spurt in the yields of government papers will not impact the Centre's borrowing.

Price stability is always a key concern for any central bank, RBI Deputy Governor Rakesh Mohan told reporters on the sidelines of a conference on debt, organised by Fitch India in Mumbai.

The RBI official said inflation is expected to fall and added that people get really upset when it reaches seven per cent mark.

Asked about the impact of rise in yields on the borrowing programme, he said: "We have not found any difficulty till date and there is ample liquidity in the system."