RBI Governor Raghuram Rajan satisfied with current interest rate of 6.75%

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Expressing satisfaction with the currentinterest rates of 6.75%, RBI GovernorRaghuram Rajan has reiterated that consumer inflation was more appropriate measure given its higher weighting of food prices and services.

Rajan made this statement during a debate on a leading English channel after Chief Economic Advisor Arvind Subramanian prodded him to take into account the wholesale price inflation in monetary policy decisions.

Wholesale inflation fell for an 11th consecutive month in September, leading to calls for the RBI to cut interest rates even further after already easing them by 125 basis points to 6.75 percent so far this year, including a larger-than-expected 50 bps cut in late September.

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