Raghuram Rajan calls inflation 'destructive disease' - media
MUMBAI (Reuters) - Reserve Bank of India (RBI) governor Raghuram Rajan called inflation a "destructive disease" that was forcing the bank to keep interest rates high, according to a domestic news agency Press Trust of India report carried by The Economic Times newspaper's website.
The strong warning against inflation came ahead of the central bank's policy review next Tuesday. The RBI raised interest rates by 25 basis points each in September and in October. It kept policy on hold last month.
"Inflation is a destructive disease," Rajan was quoted by PTI as saying in a New Delhi speech on Thursday.
"Industrialists complain about high interest rates but we don't have a choice but to keep interest at a high rate because inflation is high at 8 per cent."
(Reporting by Rafael Nam; Editing by Gareth Jones)
- Tweet this
- Share this
- Digg this
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- Russia can run on empty for a year if sanctions block new bonds
- Mumbai hit by big power cuts after technical glitch at Tata Power unit
- Rupee sees biggest fall in three weeks on broad dollar gains
- 100 days of Modi: Good for business, not so good for marginalised groups
The BSE Sensex on Tuesday breached the psychologically key level of 27,000 points for the first time to hit its third consecutive record high as blue-chips such as HDFC Bank gained after recent data raises hopes about the economy. Full Article