RBI chief: need to lower inflation before cutting rates

MUMBAI (Reuters) - Reserve Bank of India (RBI) Governor Raghuram Rajan said on Monday inflation in Asia's third-largest economy was still high and there was no point in cutting interest rates to see inflation pick up again.

The RBI wants to bring down interest rates when it is "feasible", Rajan told a banking conference.

Retail inflation, which the central bank tracks for setting lending rates, edged down marginally to 7.8 percent in August from 7.96 percent a month earlier, helped by slower annual rises in prices of fuel and clothes.

(Reporting By Neha Dasgupta, Writing by Gaurav Pai; Editing by Anupama Dwivedi)