August 4, 2015 9:09 PM

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Fall in Crude, commodity prices best chance to curb inflation: Rajan

RBI Governor Raghuram Rajan today said that India must take advantage of a continuing plunge in crude oil and other commodity prices to sustainably choke inflation. Addressing the customary post-policy conference call with analysts in Mumbai today, Dr. Rajan said it is the best time to bring down inflation and it can be done at a relatively low-cost in the present circumstances.Dr. Rajan said he is not trying a Volckerian disinflation method as interest rates haven't gone higher than 8 per cent. Adding that RBI is comfortable with the pace at which deflation is taking place, Dr. Rajan said RBI is being very careful so that it does not inflict more pain on the economy than it can handle.

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