Consumer inflation to ease in next two months: Raghuram Rajan
MUMBAI (Reuters) - India's consumer inflation should ease in the next two months, and will fall to 8 percent by the end of the year, Reserve Bank of India (RBI) Governor Raghuram Rajan said in an interview with TV news channel CNN-IBN on Thursday.
The comments came after the RBI unexpectedly raised interest rates by a quarter percentage point on Tuesday, marking its third hike in five months.
The consumer price index eased to a three-month low of 9.87 percent in December. A central bank panel last week had recommended bringing down the retail inflation gauge to below 8 percent by January 2015.
"There is some disinflation in the system. What was 9.87 is going to come down further next month, and probably a little further into March," Rajan told CNN-IBN.
"We are setting rates at a level that we think is consistent with that disinflation for us to get some bite and for the inflation in the system to come down to about 8 percent at the end of the year."
(Reporting by Rafael Nam and Neha Dasgupta Editing by Jeremy Gaunt)
- Tweet this
- Share this
- Digg this
- UPDATE 4-Boy and girl on Korean ferry drowned with life jackets tied together
- More teams withdraw, Nepal's Everest season in jeopardy
- BJP eyes gains in south, east to cut clout of regional queens
- Met office rules out surplus monsoon in 2014
- RPT-Apple resets the clock as investors await next big thing
The opposition Bharatiya Janata Party was set to make gains in Tamil Nadu and West Bengal that began voting on Thursday in the sixth phase of a mammoth general election that could help it build a stable majority in parliament. Read | Full Coverage: Election 2014
India may cede top rice exporter spot under Southeast Asian price onslaught. Full Article