FM Nirmala Sitharaman defends RBI: 'Reining in inflation, capital outflows'

India's retail inflation reversed its downward trend in January at 6.52 per cent and once again breached the central bank's upper tolerance limit

Defending the interest rate hikes by the Reserve Bank of India (RBI), Finance Minister Nirmala Sitharaman on Monday said that the central bank is not necessarily synchronising with central banks of the developed world, but acting to control inflation and capital outflow.

“None of us would want inflation to be completely out of control. The RBI’s business is to manage inflation and keep it under expected limits governed by an Act. It is not necessarily synchronising and at the same time also watching the global movement of capital. Once the interest rate goes up somewhere, capital runs that side. They