Mumbai: The Reserve Bank of India will aim for a real interest rate of 1.5 per cent to 2 per cent over the long-term, Governor Raghuram Rajan said on Tuesday.
The central bank would gradually move towards a new monetary policy structure next year, he said. The government is expected to amend the RBI Act by early next year to incorporate a monetary policy committee that gives voting rights to officials both within and outside the central bank.
The comments come after the RBI kept the repo rate on hold at 8.00 per cent on Tuesday.
Copyright: Thomson Reuters 2014
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
