Reserve Bank of India Governor Raghuram Rajan today cut interest rate by 0.50 per cent, double of what was broadly anticipated and the biggest in more than three years. The cut brought down repo rate to 6.75 per cent, the lowest in four-and-half-years.
Here are the top five quotes from his press conference:
1. My name is Raghuram Rajan and I do what I do.
2. I don’t know what you want to call me… Santa Claus… you want to call me hawk, I don’t know. I don’t go by this.
3. We want to make sure that word sustainable and growth go together. Both are are important. And that’s why we used what room we had. But I don’t think we were excessively aggressive. We were not throwing out Diwali bonus.
4. While the Reserve Bank’s stance will continue to be accommodative, the focus of monetary action for the near term will shift to working with the government to ensure that impediments to banks passing on the bulk of the cumulative 125 basis points cut in the policy rate are removed.
5. Continuing policy implementation, structural reforms and corporate actions leading to higher productivity will be the primary impetus for sustainable growth.
With agency inputs