MUMBAI (Reuters) - The central bank risks excessive monetary tightening given the lag in monetary policy, Reserve Bank of India (RBI) Governor Raghuram Rajan said on Wednesday in a conference call with analysts.
"If we tighten significantly more now, given the long lead times in monetary policy acting, we may find ourselves having over-tightened," Rajan said.
Rajan added there had already been some sacrifice to India's economic growth and there could be more as the central bank sought to bring down inflation.
RBI raised interest rates for the second time in as many months on Tuesday, warning that inflation is likely to remain elevated despite sluggish growth, and rolled back an emergency measure put in place in July to support the rupee.
(Reporting by Mumbai markets desk; Editing by Rafael Nam)
