Mumbai: India is likely to meet the central bank`s inflation target of 6 percent by January 2016, while economic growth is expected to gradually pick up, Reserve Bank of India Deputy Governor S.S. Mundra said on Thursday.
"Inflation should be as indicated by Reserve Bank of India. By January 2016 it should be meeting with our glide path of 6 percent," Mundra told reporters on the sidelines of an industry event.
"Some global uncertainty will always be with us and the system should be prepared to deal with them."
India`s consumer prices inflation accelerated to 5.11 percent in January, after shifting to a new base year for calculating prices, but stayed well below the central bank`s target, bolstering prospects for further interest rate cuts.
Mundra said state-owned banks would need 2.5 trillion rupees in capital to meet Basel III requirements by 2019. He had earlier told TV channel CNBC TV18 these lenders would need a higher capital than the 2.4 trillion rupees it had estimated earlier.
