Will not hold rates high any longer than necessary: Rajan

The Reserve Bank of India (RBI) will not hold interest rates high any longer than is necessary, and if disinflation proceeds as warranted, there will eventually be room to cut rates, governor Raghuram Rajan told a media briefing after the policy review.

The central bank is monitoring the liquidity situation and trying to keep the call money rate close to 8 percent, Rajan said.

India's central bank kept its key policy repo rate unchanged on Tuesday as widely expected, but warned about inflationary risks should a shortfall in monsoon rains spark a surge in food prices.

EDITORIAL OF THE DAY

  • Acquiring indigenous capability to assemble and produce our own fighter aircraft is the goal

    Narendra Modi government’s decision to procure three squadrons totalling 36 Rafale combat aircraft from French Dassault Aviation through a bilateral

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sachin Shridhar

Don't sell out to the lowest bidder

Why can’t India have a decent, if not world class, ...

Kuruvilla Pandikattu

Bad memories can heal, too

Pope Francis’s visit to Armenia in June this year is ...

Shona Adhikari

Where Bhupen Khakhar rubs shoulders with Georgia O'Keeffe

The next India Art Fair (IAF) is scheduled to take ...