RBI gover­nor Ra­jan hints at year’s fourth in­ter­est rate cut

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - Press Trust of In­dia ht­metro@hin­dus­tan­times.com

WASHINGTON: Hint­ing at the fourth in­ter­est rate cut this year, Re­serve Bank of In­dia gover­nor Raghu­ram Ra­jan has said he is not done with low­er­ing rates and the cen­tral prob­lem for the en­tire world re­mains slow­ing eco­nomic growth.

Ra­jan, par­tic­i­pat­ing in the elite Jack­son Hole eco­nomic sym­po­sium of the Kansas City Fed­eral Re­serve, said on Fri­day the RBI had reached an agree­ment with the gov­ern­ment on a new rate- set­ting panel, the Mon­e­tary Pol­icy Com­mit­tee, which would be an­nounced soon.

The RBI left in­ter­est rates un­changed at its last pol­icy re­view on Au­gust 4, hav­ing al­ready cut them by 75 ba­sis points this year as a slump in global com­mod­ity prices brought in­fla­tion un­der con­trol. By hold­ing rates steady, Ra­jan went against the ma­jor­ity on an ad­vi­sory panel, who had rec­om­mended a re­duc­tion.

Ra­jan said on Fri­day the cen­tral bank was still in “ac­com­moda­tive mode” and would take a de­ci­sion as per the data on in­fla­tion and other macroe­co­nomic fac­tors.

“We also have i nfla­tion which other peo­ple do not have. We have cut the in­ter­est rate thrice so far this year and we are still in ac­com­moda­tive mode. We will have a look at data as it comes in and take a view ac­cord­ingly,” he said. “We have not said we are fin­ished ( on cut­ting rates) and we will take a view as the data al­lows us to do,” Ra­jan told CNBC in an in­ter­view on the side­lines of the Jack­son Hole sum­mit.

CON­TIN­UED ON P6

We have not said we are fin­ished [on cut­ting in­ter­est rates] and we will take a view as the data al­lows us to do.

RAGHU­RAM RA­JAN, RBI guv to CNBC

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