RBI still not comfortable on inflation, says RBI Governor Raghuram Rajan

The Reserve Bank of India (RBI) is not more comfortable over inflation now than it was at its previous policy in April, Governor Raguram Rajan said in an interview to the ET Now television channel on Wednesday.

The central bank cut its policy repo rate by 25 basis points to 7.25 per cent on Tuesday, for the third time this year, to boost investments and growth in what Rajan termed as a stance to front-load rate cuts despite uncertainty over monsoon, crude oil prices and external shocks.

The benchmark 10-year bond yield has risen by 15 basis points to 7.97 per cent since Monday after market construed the tone of the policy as hawkish.

(Reuters)