| Follow us on:
|
![Indian Central Bank governor Raghuram Rajan has previously been chief economist at the International Monetary Fund (IMF) and a professor at the University of Chicago [Xinhua]](http://thebricspost.com/wp-content/uploads/2014/12/233545947_8.jpg)
Indian Central Bank governor Raghuram Rajan has previously been chief economist at the International Monetary Fund (IMF) and a professor at the University of Chicago [Xinhua]
A statement from the Reserve Bank of India said interest rate, or the repo rate remains unchanged at 8 per cent and the reverse repo rate stays at 7 per cent. The cash reserve ratio (CRR) remains the same at 4 per cent.
“If the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle,” Indian central bank governor Raghuram Rajan said while delivering his bi-monthly monetary policy on Tuesday. Rajan has previously been chief economist at the International Monetary Fund (IMF) and a professor at the University of Chicago.
The Central Bank’s policy decisions are not complicated by India’s ruling dispensation as the bank is autonomous. The Bank has set a 6 per cent inflation target by January 2016.
The Indian economy grew at a much slower pace in the July-September quarter at 5.3 per cent as it tries to weather slowing global demand and a weakened manufacturing sector, government figures showed last week.
The Narendra Modi-led government in New Delhi is struggling to revive India’s economy after it swept to power in May with the strongest electoral mandate in 30 years.
Indian media reports have suggested that the Finance Minister Arun Jaitley favours a major overhaul of the current monetary policy framework wherein the central government will specify ‘inflation targets’ for the Central Bank to achieve.
TBP and Agencies
