India not out of inflation woods: RBI chief Raghuram Rajan

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Mumbai | Published: April 9, 2015 3:08:10 PM

Reserve Bank of India will continue to focus on targeting inflation and cannot drop guard, RBI Governor Raghuram Rajan said...

Raghuram Rajan, rbi, Raghuram Rajan rbi, reserve bank of india, inflation, Raghuram Rajan inflation, inflation in india, inflation rate in india, business news, india news, indian economyThe RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18, says Reserve Bank of India Guv Raghuram Rajan. (PTI)

Reserve Bank of India will continue to focus on targeting inflation and cannot drop guard, RBI Governor Raghuram Rajan said in an interview to CNBC-TV18 on Thursday.

“This is where we cannot relax our guard quickly, we cannot say we are out of the inflation woods,” Rajan said, referring to the central bank’s achievement over bringing down retail inflation sharply from double digit level.

“This is the time we have to consolidate and ensure that the disinflationary perception is entrenched.”

India’s consumer prices index fell to 5.37 percent in February from a high of 11.16 percent in November 2013, a few months after Rajan assumed office.

Appreciating the government’s efforts on fiscal consolidation over medium term, Rajan said the government was collaborating on the central bank’s inflation target.

The RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18.

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