The Reserve Bank of India today unexpectedly raised its policy interest rate on Tuesday by 0.25 per cent but said that if consumer price inflation eases as projected, it does not foresee further near-term tightening.RBI chief Raghuram Rajan addressed a news conference after the central bank's policy announcement. Here are the highlights:
- Urjit Patel Committee recommendations still being studied
- Complete implementation of its report will need a dialogue with the government
- The consumer inflation has to be brought down
- Premature to say we are moving towards inflation targeting
- RBI cognizant of the weak macro economy
- To pay more attention to core consumer price inflation
- Inflation is not merely food inflation, there's more than that
- RBI confident of bringing down inflation
- Let us fight the fight that needs to be fought
- Deposit rate is high because inflation is high. Cutting policy rates will not reduce banks' cost of funds, will not create demand
- Should be able to hit 8 per cent inflation target for the year after the rate hike
- Confident that inflation will be brought within tolerable limits, which will give room on the monetary front
- Not giving up on growth
- Some part of the inflation remains sticky so some medicine was needed
- Decision to hike rates was close, but the RBI choose to act
- Pre-2005 note withdrawal not intended to get at black money or tax evasion
- The aim is to prevent counterfeit notes
- Indian consumer faces high level of inflation. It has to be brought down
- Growth-inflation trade-off a fallacy
- Swaps with oil companies can be done in rupee terms if required
- Bringing down inflation is one way of assuaging the foreign investors
- Stance neither hawkish nor dovish, doing all that is required
- Long-term flows remain stable
- Well prepared for external volatility
- We need to create an environment for recovery to be strong, inflation is part of that environment
- Monetary transmission will increase as inflation comes down
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