India inflation must be visibly on downward path for cenbank to slacken: MPC member Varma

MUMBAI, Aug 28 - India's inflation should be brought within the central bank's 2%-6% tolerance band on a sustainable basis and its trajectory towards 4% must be"visible" before the war on inflation can be slackened, a monetary policy committee member said on Monday.

MPC member Jayanth Varma told the Reuters Global Markets Forum in an interview that there was much greater urgency to bring inflation to within the Reserve Bank of India's comfort band than it was to bring it to the mandated medium-term target of the centre of the band. Food inflation tends to be 'transitory' if monetary policy is restrictive as it currently is, Varma said, adding that he was not surprised by the July retail inflation print and expects August to be around similar levels.

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