BENGALURU (Reuters) - The Reserve Bank of India will wait longer to see the impact of monsoon on inflation even as initial rainfalls have been good, central bank deputy governor S. S. Mundra said on Friday.
The RBI said at its June policy review that it would monitor monsoon rains' impact on inflation to determine whether it cuts interest rates again after easing by 75 basis points so far this year.
"It's just the beginning," Mundra said regarding the monsoon.
"So far trend looks good, but we need to wait some more time to see how its progressing."
The RBI deputy governor was speaking on the sidelines of an industry event in the southern city of Bengaluru.
Mundra also reiterated the central bank's concerns about the high level of bad loans among state-run banks and said that banks need to be careful regarding how they use the capital that the government plans to infuse.
(Reporting by Derek Francis and Sumanta Dey; Writing by Suvashree Choudhury; Editing by Rafael Nam)
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