Reserve Bank of India Governor Raghuram Rajan said the IIP and the CPI numbers were surprising, and the central bank would have to look at the details and then frame its policies.
“We are uncomfortable with the numbers,” Dr. Rajan said here at a press conference after the Board of Governor meeting.
Pointing out that he would not like to give quick reactions without going into “the details of what went into it,’’ the central bank chief said, “We will wait for the WPI numbers, which are expected next week, but certainly the CPI is higher than the market expectation.”
He, however, emphasised that no single piece of data would determine RBI’s policies, adding that while the IIP surprised on the downside, CPI surprised on the upside.Weaker growth
“Clearly, growth is weaker than we would like, and inflation is higher than what we would like. In a situation like this, we have to calibrate our policies and make trade-offs based on all available data,” he said.
However, growth of liquidity would would be maintained, he said.Dr. Rajan spoke at length on the need for financial inclusion, saying that this and the ease of investing in safe entities could help prevent Saradha-type scams.
To a question on the new banking licences, he said these might be announced early next year.
“As for how many… this will be based on the recommendations of the committee, and what the RBI decides. It will be based on what we think is appropriate and who is meeting the norms, the RBI Governor said.