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RBI chief says on course to reach inflation targets

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Reuters MUMBAI
Last Updated : Sep 30 2014 | 1:26 PM IST

MUMBAI (Reuters) - India's economy is currently positioned to reach Reserve Bank of India's 6 percent inflation target by January 2016, but there is a lot more confidence about reaching a near-term target of 8 percent by January next year, Governor Raghuram Rajan said after a policy review on Tuesday.

The RBI kept its key policy repo rate unchanged at 8.0 percent as widely expected, while expressing concerns about risks to its target to bring consumer inflation down to 6 percent by January 2016.

(Also read, what experts say about RBI's monetary policy, click https://bsmedia.business-standard.comin.reuters.com/article/2014/09/30/india-economy-rbi-rates-experts-idINKCN0HP0EJ20140930)

Turning to regulatory issues, Rajan said the central bank is in the process of modifying the definition of "wilful defaulters" so that company directors are culpable.

(Reporting by Mumbai Treasury Team; Editing by Subhranshu Sahu and Simon Cameron-Moore)

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First Published: Sep 30 2014 | 1:14 PM IST

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