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India was likely to meet the central bank’s inflation target of six per cent by January 2016, Reserve Bank of India (RBI) Deputy Governor S S Mundra said on Thursday, adding economic growth was expected to gradually pick up.
“Some global uncertainty will always be with us and the system should be prepared to deal with that,” he said.
In January, Consumer Price Index-based inflation rose to 5.11 per cent, after a new base year was adopted to compute it. However, it was well below the central bank’s target, bolstering prospects of interest rate cuts.
Mundra said state-owned banks would need Rs 2,50,000 crores in capital to meet Basel III requirements by 2019. He had earlier told TV channel CNBC TV18 these lenders would need a higher capital than the Rs 2,40,000 crores it had estimated earlier.
