RBI to fo­cus on bring­ing in­fla­tion down to 4pc tar­get

The Pak Banker - - FRONT PAGE -

The Re­serve Bank of In­dia (RBI) re­mains fo­cused on bring­ing down con­sumer in­fla­tion to its tar­get of 4 per­cent by March 2018, sup­port­ing an econ­omy grow­ing be­low po­ten­tial, and en­sur­ing banks pass on rate cuts, ac­cord­ing to its an­nual re­port out on Thurs­day.

Af­ter cut­ting its repo rate by 75 ba­sis points this year, the RBI kept its repo rate on hold at its pol­icy re­view this month, say­ing it wanted to mon­i­tor in­fla­tion and wait for lenders to fur­ther lower their lend­ing rates. In the short-term, the RBI will "fo­cus on bring­ing down in­fla­tion in line with the pro­posed glide path," as well as work­ing with the gov­ern­ment and banks "on speed­ing up the res­o­lu­tion of dis­tressed projects and clean­ing up bank bal­ance sheets," Gover­nor Raghu­ram Ra­jan wrote in the re­port.

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