Monday, 15 September 2014

Inflation and IIP data show economic recovery still 'uneven': Raghuram Rajan

The Reserve Bank of India Governor Raghuram Rajan said India's macroeconomic indicators are improving and inflation has been coming down consistent with the central bank's forecast, but Asia's third-largest economy needs investment growth to pick up.
Rajan, however, said Friday's industrial output and inflation data suggested that recovery was "uneven."
Output from mines, utilities and factories grew by a much slower-than-expected 0.5 percent year-on-year, government data showed on Friday, down from June's revised 3.9 percent rise.
Retail inflation, which the central bank tracks for setting lending rates, edged down marginally to 7.8 percent in August from 7.96 percent a month earlier.
Rajan said it's time the government start to de-regulate diesel prices as global crude oil prices are falling.
On recent bank-related scandals, the central bank governor called for better internal evaluation of lending process and said banking must become more engaged and informed.

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