Inflation continues to be RBI's priority: Rajan

Inflation continues to be RBI's priority: Rajan
Just days after surprising the markets by leaving the rates unchanged despite rising inflation, the RBI Governor Raghuram Rajan, while speaking to a TV channel, said that inflation continues to be the priority of the central bank and further action on rates will be taken only after analysing the inflation data.

A media report quoted Rajan as saying "...nobody should doubt our desire to fight inflation and our belief that interest rates are our main tool that we have. Nobody should doubt that."

When asked about his next move, Rajan said "We want to see data on how the work we have done so far is playing out and then we will take the next step. Don't judge me by whether I raise interest rates in every meeting."

RBI Governor Rajan took the charge as chief of the central bank on September 4 and increased the key interest rate twice by 0.25 per cent each in successive monetary policies. However, he refrained from hiking the rates on December 18 when everyone had expected at least a 25 bps hike.

Dion Global Solutions Ltd.

Story first published: Tuesday, December 24, 2013, 9:10 [IST]
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