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LATEST NEWS UPDATES | Food price surge puts Raghuram Rajan on the back foot -Rafael Nam and Rajendra Jadhav

Food price surge puts Raghuram Rajan on the back foot -Rafael Nam and Rajendra Jadhav

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published Published on Jun 22, 2015   modified Modified on Jun 22, 2015
-Livemint.com

Rajan has indicated he will now pause, projecting consumer inflation could rise to about 6% by next January

Aurangabad:
Prices of many foodstuffs are surging in India, despite a good start to monsoon rains—an unexpected boon for wholesalers, but a major headache for the central bank and a government hoping for its help to reboot the economy.

Reserve Bank of India (RBI) governor Raghuram Rajan has cut interest rates three times this year to boost growth, but he has since warned he will not cut again if poor rains drive up prices and threaten his inflation target.

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Livemint.com, 21 June, 2015, http://www.livemint.com/Politics/HUPVOa4I0j31lvRRVfOKZO/Food-price-surge-puts-Raghuram-Rajan-on-the-back-foot.html


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