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 2-Girl who fatally shot Arizona gun instructor said weapon was too powerful
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- 100 days of Modi: Good for business, not so good for marginalised groups
- Banks pile pressure on liquor baron Mallya over airline loans
- Comedian Joan Rivers still on life support - daughter
Optimism that sunny growth figures herald an economic revival in India is probably misplaced - in fact there is little hard evidence to support the idea that Asia's third-largest economy is heading for a broader and sustained rebound anytime soon. Full Article
100 days of Modi: Good for business, not so good for marginalised groups. Full Article