NEW DELHI/MUMBAI The Reserve Bank of India will focus on achieving 5 percent consumer price inflation by end-March, Governor Raghuram Rajan said, after the central bank expressed concerns over an upside risk to that target at its policy review on Tuesday.
"For now, what is primarily in our mind is meeting the 5 percent target."
The RBI kept its policy repo rate unchanged at 6.50 percent but kept room for further cuts open, though it raised concerns over upward pressure on food and commodity prices.
Rajan also said the central bank was armed with significant foreign exchange reserves and the longer maturity profile of its external debt would enable it to handle global shocks such as the possibility of Britain's exit from the eurozone, though it could create short-term volatility in India's financial markets.
(Reporting by Suvashree Dey Choudhury, Neha Dasgupta and Swati Bhat; Editing by Sunil Nair)
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