Can't expect inflation to drop faster by raising rates: Jayanth R Varma

I think we can bring inflation down to 5 per cent in a couple of quarters, says MPC member Varma

Jayanth R Varma, member of the Reserve Bank of India's monetary policy committee, explains why he wanted to pause interest rate hikes in an interview with Manojit Saha. Edited Excerpts.

You have said the MPC should pause now on rates -- the meeting minutes showed. But September inflation is at 7.4 per cent. Does that change your view?

No. Inflation somewhere in that range was expected.

What gives you the confidence that inflation will be 5 per cent one year ahead. Many times projections have gone wrong. And CPI inflation is still above 7 per cent...

That is true. There