File Photo: RBI Governor 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
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