Rate cuts by RBI should not be seen as goodies: Rajan

Aug 24,  8:24 PM Reserve bank of India governor Raghuram Rajan today said that rate cuts by the apex bank should not be seen as goodies. Speaking at a banking summit in Mumbai today, Rajan made it clear that rate cuts are a natural consequence (of low inflation) that RBI has no hesitancy in delivering. He added that it's low inflation that will decide future rate cuts. Blaming leading central banks' booster doses as the main reason behind the turmoil in global markets, Rajan said RBI is ready to deploy forex reserves to stem the market volatility amid the bloodbath. He however, warned against the consequences of a monetary boosterish. Explaining his position further on inflation management, Rajan said the only way to tackle the problem of price rise is to get inflation of all kinds down as so long as the divergence between inflation in traded goods and non-traded services is large.