Reserve Bank of India gov on CNBC
- rest of the world facing deflationary pressures
- rupee will stabilize after initial volatility
- going forward India has to deflate a little more
- likely to reach CPI target of 6% by end Jan
- on-going disinflationary trend may give more policy room
- RBI remains independent
- interest rate decision always made by RBI
- level of reserves is adequate
- fundamentals don't justify asset prices
Rajan highlighting that high inflation can bring its own areas of concern
India's economy remains the least affected of the EM nations
Rajan - RBI is independent
