India has to deflate little more –RBI’s Rajan

FXStreet (Mumbai) - The Reserve Bank of India governor Rajan, while speaking to CNBC, said the Indian economy has to deflate has some more and that the CPI target of 6% shall be achieved by end of January.

Key Points

Rest of the world facing deflationary pressures

Rupee will stabilize after initial volatility

On-going disinflationary trend may give more policy room

Level of reserves is adequate

Fundamentals don't justify asset prices