According to a report, RBI Governor Rahuram Rajan has said that economy is truly in the recovery mode and RBI will continue its accommodative policy to boost the growth within the space that is provided by government’s inflation target.
In the fifth bi- monthly review report, he further added “what we have an economy that is truly in recovery, but with some weak areas. Hopefully they will soon turn around as we go forward.”
According to government 7.6- 7.8 growth was expected in this fiscal year but RBI pegged it down at 7.4 percent. Rajan further added, the central bank will continue to be accommodative, that will help him to pick up challenging signs of inflation.