TIL Desk Business/New York-Raghuram Rajan, whose tenure as the RBI Governor ended this week, hopes the process of cleaning up Indian banks will be finished and the government will continue to prioritise “low inflation”.
Rajan, 53, who stepped down on September 4 as the Governor of the Reserve Bank of India, said in an interview that he hoped the country would finish “the process of bank cleanup which is underway.”
He also noted that his tight monetary policy has helped in bringing India’s rate of inflation — currently about 6 per cent — down to the upper end of the government’s target range. “I think we’ve done exactly what was needed,” he said adding that the central bank should continue to prioritise low inflation.
A new warning also came from Rajan at a time when the world’s central banks appear to be at a loss about how to get global growth moving again. Rajan warned low interest rates globally could distort markets and would be difficult to abandon.
