Rajan: Scope to cut rates if inflation heads to 5 percent | Reuters

MUMBAI The Reserve Bank of India (RBI) will have more room to cut interest rates if the central bank gains confidence in reaching its 5 percent target for consumer inflation by March 2017, said Governor Raghuram Rajan on Wednesday.

Rajan, in an interview with TV channel CNBC Awaaz, called the current repo rate of 6.50 percent "appropriate" and added the central bank has used up all its "space available" to cut interest rates, pinning further easing on inflation.

"If we get confident of achieving 5 percent inflation target by March 2017 then we will get more space to cut," Rajan said in an interview conducted in Hindi.

The RBI left the repo rate unchanged on Tuesday after stronger-than-expected inflation data in April. India will next report monthly consumer prices data on Friday.

In a separate interview with TV channel NDTV, Rajan said he had never had "a serious disagreement" with Finance Minister Arun Jaitley as he sought to dispel speculation about potential disagreements between the Finance Ministry and the RBI.

(Reporting by Suvashree Dey Choudhury and Neha Dasgupta; Editing by Rafael Nam)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jun 09, 2016 00:15 AM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See