RBI's Rajan says to focus on meeting 5 percent inflation aim by March end | Reuters

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)

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


Updated Date: Jun 07, 2016 23:30 PM

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