Rajan Says Low Inflation Outlook Key Aim After Taking RBI Reins

Raghuram Rajan said containing inflation expectations is the Reserve Bank of India’s key goal after becoming its 23rd governor, as the country grapples with a plunging currency and weakening economic growth.

Rajan, 50, said monetary stability is the RBI’s primary role and “this means low and stable expectations of inflation, whether that inflation stems from domestic sources or from changes in the value of the currency, from supply constraints or demand pressures.” He said inclusive growth and development, and financial stability, are important mandates too.