Inflation pattern to decide monetary easing, says RBI Governor Raghuram Rajan

Finance Minister Arun Jaitley and Reserve Bank of India (RBI) Governor Raghuram Rajan jointly addressed the media on Sunday, answering queries related to monetray policy and the state of the economy. Here is what the two leaders ad to say:

Finance Minister Arun Jaitley

>> No question of disconnect between government and RBI

>> There has always been a regular interaction with RBI and government

>> Hope banks cut rates as RBI has reduced rates twice

RBI Governor Raghuram Rajan

>> External environment remains constrained

>> US Fed may take a little longer to hike interest rates

>> Pattern of inflation will decide monetary easing

>> Have to be more careful on food management

>> Government actions on disinvestment depends on external and internal environments