New Delhi, Jan 25 (Agencies): Describing the Reserve Bank's decision to hike key policy rates as "just right", Chief Economic Adviser Kaushik Basu on Tuesday said the battle to combat inflation will continue in 2011-12.

"... The battle against inflation, which we were hoping would end by March or April, would probably continue for some more months," Basu told reporters here.

In its third quarterly review on Tuesday, the Reserve Bank of India (RBI) projected inflation at 7 per cent by March-end.

Earlier, the apex bank had projected inflation at 5.5 per cent by March, 2011, and the upward revision in the estimate is on account of high food and fuel prices, in addition to demand pressure building up in the economy.

"Inflation has gone up during December... However, industrial growth has shown a slowing down and it (RBI) has to balance down between these two. I think the RBI has done just right, which is tighten up a bit by raising the repo rate and on the other hand... keeping the SLR the way it was," Basu said.