Need to lower inflation before cutting rates, says RBI Governor

Reserve Bank of India (RBI) Governor Raghuram Rajan has said inflation in India, Asia's third-largest economy, was still high and there was no point in cutting interest rates to see inflation pick up again.

The RBI wants to bring down interest rates when it is "feasible", Rajan told a banking conference on Monday.

Retail inflation, which the central bank tracks for setting lending rates, edged down marginally to 7.8 per cent in August from 7.96 per cent a month earlier, helped by slower annual rises in prices of fuel and clothes.

(Reuters)