"I have no desire to keep interest rates high for even a second longer. I want to bring down interest rates when it is feasible and that would be when we have won the fight against inflation," he said.

 

"There is no point in cutting interest rates to see inflation pick-up again," Rajan said, adding that right now he thinks the central bank is continuing the way it proposed recently.

 

Taking a dig at the industry for its persistent demand to cut lending rates even when there is a price increase in the sector, the Governor asked them to bring down prices.

 

"When you do that then we will do that, we have no problem. Clearly you will have no consensus on this," he said.

 

The August wholesale price inflation sharply declined to a near five-year low of 3.74 percent on declining prices of vegetables and other food articles from 5.19 percent in July and 6.99 percent in August 2013.

 

However, the consumer price inflation which the RBI has adopted as a monetary policy gauge, still remains high. For August, it inched down marginally to 7.8 percent from 7.96 percent a month earlier.

 

The RBI is targeting retail inflation of eight percent by January next year and six percent by January 2016.

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