Comfortable with existing interest rates: Raghuram Rajan

RBI governor Raghuram Rajan, while talking about wholesale price inflation in monetary policy decisions in a televised debate on Thursday, said that he was comfortable with the existing interest rates.

Zee Media Bureau

New Delhi: The Reserve Bank of India governor Raghuram Rajan said on Thursday that he was comfortable with the current rate of interest around 6.75 percent, however, would like to stay "accommodative".

He was speaking in a televised debate with the government's chief economic adviser Arvind Subramanian, and was talking about wholesale price inflation in monetary policy decisions.

Wholesale inflation fell for an 11th consecutive month in September, leading to calls for the RBI to cut interest rates even further after already easing them by 125 basis points to 6.75 percent so far this year, including a larger-than-expected 0.50 percent cut in late September.

Rajan said that consumer inflation was a more appropriate measure given its higher weighting of food prices and services, and reiterated that he was comfortable with the current interest rates regime.