RBI to wait for more data before taking policy action: Ragjuram Rajan
Zee Media Bureau
New Delhi: Reserve Bank of India governor Raghuram Rajan on Wednesday said that the central bank will wait for more data before taking policy action.
Talking to media after the mid quarter policy announcement, he said that the RBI is trying to calibrate monetary policy to primarily target inflation in an environment of weak economy.
In a surprise move, the Reserve Bank today kept the repo rate- the rate at which the central bank lends money to commercial banks- unchanged at 7.75 percent in its mid-quarter review of monetary policy.
Similarly the reverse repo rate too stays at 6.75 percent, the cash reserve ratio (CRR) at 4 percent and the marginal standing facility (MSF) at 8.75 percent.
“Our reading is significant fall in vegetable prices at both wholesale and retail level,” he said.
If expected softening of food inflation does not materalise, RBI will act, including on off-policy dates,” Rajan added.
Our sense is economic growth is below potential even now, Rajan said.