When inflation gets closer to 4%, focus can shift to growth: Jayanth Varma

'Lot of high frequency indicators are showing some signs of slowing'

Jayanth Varma, member of the RBI’s monetary policy committee, explains why the rate-setting committee needs to wait and watch for now in an interview with Manojit Saha. Edited exerpts:

You talked about two risks on inflation that have emerged since the February meeting. Why don’t you ask for a rate hike then?

These are risks which may or may not materialise. If you look at the monsoon, we have forecast from the India Meteorological Department that says it will be normal. When we met, there was no forecast at all. Skymet is saying it will be below normal. So there is uncertainty