RBI not biased towards either raising or cutting rates, says Raghuram Rajan

The Reserve Bank of India is not biased towards either raising or cutting interest rates, and its monetary policy stance will depend only on inflation data, Governor Raghuram Rajan told analysts in a conference call on Wednesday.

"As data comes in we will have a better view of what is happening and adjust accordingly, so I shouldn't assume that we're either biased towards raising rates or cutting rates at this point," Rajan said.

The RBI kept its key policy repo rate unchanged at 8 per cent on Tuesday and said it will refrain from cutting interest rates until it is confident that consumer inflation can be reduced to a target of 6 per cent by January 2016.

(Reuters)