Prices to determine rates: Rajan

  • HT Correspondent, Hindustan Times, Mumbai
  • Updated: Nov 15, 2013 23:33 IST

The Reserve Bank of India (RBI) governor Raghuram Rajan on Friday said multiple factors, in addition to inflation, will determine monetary policy scheduled to be announced in December.

“The weak state of the economy, as well as the good kharif and rabi harvest, will generate disinflationary forces that will help, and we await data to see how these forces are playing out. No single data point or number will determine our next move,” Rajan said in Mumbai.

With both retail and wholesale inflation high, the expectation is that the RBI will raise policy rates further to counter rising prices.

Inflation as measured by the wholesale price index was at an eight-month high of 7%, while retail inflation stood at a seven-month high of 10.09% in October.

In the past two consecutive policies, the RBI raised the repo rate by 0.25 per cent each due to the worsening price situation. The next policy is scheduled on December 18.

Meanwhile, Rajan called for forceful action to counter the atmosphere of cynicism, which has slowed down the decision-making process, and to tap growth opportunities.

“That cynicism does not just permeate the foreign press and their audiences, but also infects our domestic debate. Every policy is greeted with suspicion and scrutinised for evidence of malfeasance,” he said while addressing BANCON 2013 in Mumbai.

Rajan said measures will be announced to incentivise banks for early detection of bad loans and better resolution of non-performing assets.

From Around the Web
Sponsored by Revcontent

also read

AAP nears target of Rs 20 cr, stops appeals for donation
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome