RBI governor Rajan says core inflation a bit higher than desired

Indian core inflation remains sticky and a bit higher than policymakers would like to see, Reserve Bank of India governor Raghuram Rajan said on Friday.

"Broadly core inflation has a been fairly sticky, a bit higher than we would want. It hasn't moved up and down. We will continue on the task of anchoring expectations," Rajan said, speaking at an event at the Chicago Booth business school in London.

Rajan also said India was in the midst of a slow recovery though there were signs of faster growth, with possible acceleration coming from a good monsoon.

He added that a banking sector clean up was underway and with the help of a bankruptcy law recently passed by parliament, the country's banks would have room to lend to the economy.