We are trying to bring down inflation ... There is a probability that inflation would come down in the next few months. In the next 2-3 months, inflation should come down, he said after inaugurating a rural branch of ICICI Bank here.
Asked if there is a possibility of RBI reducing the policy rates in its mid-quarter policy review on December 18, Chakrabarty said the repo rate will be cut when inflation comes down.
Wholesale price index-based inflation for October moderated to 7.45% from 7.81% in the previous month.
Stressing that high inflation is inimical to growth, the deputy governor said: People are saying because of high interest rate, growth is coming down. What we are saying is the interest rate is high because inflation is high.
He added: Thats why RBI's first concern is to bring down inflation.