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RBI not ruling out mid-policy rate cut - Rajan

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Reuters MUMBAI
Last Updated : Aug 04 2015 | 12:28 PM IST

MUMBAI (Reuters) - The Reserve Bank of India is not ruling out acting outside its regular policy reviews and is awaiting further data, Governor Raghuram Rajan said shortly after the central bank left the policy rates unchanged on Tuesday.

"There was more need to move fast in the early stages of the turnaround, we will take all the information into account and decide whether at times it warrants moving in-between policy cycles or it doesn't," Raghuram Rajan said.

RBI held its policy rate at 7.25 percent on Tuesday, pausing after reducing the policy rate by a total 75 basis points since January. Rajan said the effects of the January easing will soon be reflected in the economy, adding that monetary policy action typically works with a lag of three to four quarters.

(Reporting by Suvashree Dey Choudhary; Editing by Simon Cameron-Moore)

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First Published: Aug 04 2015 | 12:10 PM IST

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