In his first public appearance since announcing he will step down at the end of his tenure in September, RBI Governor Raghuram Rajan on Monday said that India can’t abandon inflation to focus on growth. In his speech, Rajan added that the RBI was wise to disregard advice for further rate cuts.
Saying that setting up of the monetary policy committee was a revolutionary step in fight against inflation, Rajan said, “Investors have gained confidence in our monetary policy goals which will only improve as we meet our inflation goals.”
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The Governor, whose term is set to end in September, said India is abandoning the old ways by focusing on low inflation.
“By focusing on low inflation, we are abandoning old ways that benefited the few at the expense of majority poor,” he said.
He expressed confidence that the Centre and the new RBI chief will internalise frameworks and institutions that have been set up and ensure low inflation in the future.