No Difference With Government on Monetary Policy Committee: Raghuram Rajan

The Reserve Bank of India (RBI) held its policy rate at 7.25 percent on Tuesday, pausing as widely expected after a spike in food prices sent consumer inflation to an eight-month high. Here are the highlights from RBI chief Raghuram Rajan's press conference.

• Fall in oil prices very beneficial for India
• RBI awaiting transmission of previous rate cuts
• Monitoring monsoon and inflation
• One set of bank licenses by this month's end
• RBI panel going through applicants
• No difference between RBI and the government over monetary policy committee
• RBI in a dialogue with the government on monetary policy committee
• RBI and government have reached a broad consensus on what the monetary policy committee should look like
• The focus is to bring inflation down so that the producer as well as the consumer both them feel comfortable
• One of the problems of focusing on WPI inflation was large parts of service sector was ignored
• One of the reasons for the strength of rupee is falling price of oil which has brought down current account deficit
• RBI not targeting a particular band of rupee
• Effects of rate cut from January should start showing now
• Monetary policy is not like a lever where you press and immediately get action, transmission takes place over time
• Not ruling out action between policy meets