Chennai:
Reserve Bank of India Governor Raghuram Rajan has said the apex bank is "determined" to make sure consumer inflation eases down along a "glide path".
An RBI panel in January recommended bringing consumer price index (CPI) inflation down to around 8 per cent by the end of January 2015 and to 6 per cent by the end of the following year.
"Hopefully by the end of the year we think the economy is on course to come down to a CPI inflation rate of about 8 percent, and by the end of next year to a level of 6 percent, and we are certainly determined to make sure it follows this glide path," Mr Rajan said in a speech in Chennai.
His comments came on the same day Finance Minister Arun Jaitley unveiled his maiden Budget, pledging to stick to the fiscal deficit target of 4.1 per cent of gross domestic product announced by his predecessor at the interim budget in February.
The RBI chief added bringing down inflation was the responsibility of both the government and the apex bank, echoing previous ones he has made on the topic.
"The right answer to inflation is collaboration between the Reserve Bank and the government, both working on the sides they can effect best," he said.
Mr Rajan also noted the RBI would "shortly" issue circulars regarding banks' lending for infrastructure projects.
Copyright @ Thomson Reuters 2013
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