Raghuram Rajan reaffirms growth rate at 5.5 percent

Reserve Bank of India (RBI) Governor Raghuram Rajan on Friday said he had no reason to dispute the growth prediction of 5.5 percent, while also revealing that the Central Bank and the ruling government were in talks to ease interest rates.

"I think the last estimate that we made before there has been some news was 5.5 percent from the RBI. Government has said between 5 and 5.5 percent. I have no reason to dispute that even though some analysts are saying below 5," he told media here today.

Rajan had surprised markets in his maiden policy review last month by raising interest rates to ward off rising inflation, while scaling back some of the emergency measures recently put in place to support the deteriorating rupee.

He noted that the RBI and the Government were having discussions to provide some respite ahead of Diwali.

"I just want to emphasize that the discussion is taking place on what can be done and the Government is asking us for suggestions. But nothing immediately has been decided on this issue. Something will be announced as and when they put a scheme together," he added.