RBI's Subir Gokarn Says India Inflation Remains High Despite Good Monsoon

Reserve Bank of India Deputy Governor Subir Gokarn said inflation remains high in the nation despite a good monsoon, driven by increases in food prices.

The central bank will take a “wait-and-watch” approach to managing interest rates in the immediate future, Gokarn said at a business conference in Mumbai today.

A liquidity deficit in the financial system, while desirable, has gone too far in recent weeks and may cause excessive volatility in short-term rates, he said.

To contact the reporter on this story: Ketaki Gokhale in Mumbai at kgokhale@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net

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