Need to keep real rates at level to sustain virtuous cycle: Ashima Goyal

Ashima Goyal tells Manojit Saha in an email interview that the inflation rate does not necessarily have to fall to 4%, but it is essential to be confident that it will stay below 5%

Ashima Goyal, an external member of the RBI’s monetary policy committee, tells Manojit Saha in an email interview that the inflation rate does not necessarily have to fall to 4 per cent, but it is essential to be confident that it will stay below 5 per cent in a sustainable manner and approach 4 per cent so that cutting rates can be considered. Edited excerpts:

While you have noted growth exceeding expectations, you also pointed out areas of weakness -- in consumption, income tax, and merchandise exports. You have mentioned employment offers have slowed in Indian Institutes of Technology. Is