News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 9 years ago
Home  » Business » Don't intend to flip-flop on policy: Rajan

Don't intend to flip-flop on policy: Rajan

By Suvashree Choudhury
December 02, 2014 12:00 IST
Get Rediff News in your Inbox:

The government is comfortable with setting a 4 per cent inflation target plus/minus 2 per cent beyond 2016, RBI Governor said.

RBI Governor Raghuram RajanThe Reserve Bank of India does not intend to flip-flop on policy and is in discussions with the government for a new monetary framework which it hopes to finalise shortly, Governor Raghuram Rajan said.

The central bank's talks with the government suggest 'things will be on track with respect to fiscal deficit,' he added during a press conference with reporters.

The RBI held interest rates steady as widely expected at its policy review on Tuesday, but said it could cut interest rates by early next year depending on whether inflation eases further and on fiscal developments.

The government is comfortable with setting a 4 per cent inflation target plus/minus 2 percent beyond 2016, Rajan clarified.

The central bank is 'certainly seeing disinflationary process' and global crude oil developments are positive for India.

The central bank is already providing 'substantial liquidity' to the market, consistent with the policy rate, Rajan said.

Image: RBI Governor Raghuram Rajan; Photograph: Reuters

Get Rediff News in your Inbox:
Suvashree Choudhury in Mumbai
Source: REUTERS
© Copyright 2024 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
 

Moneywiz Live!