RBI best tool to control inflation interest rate: Rajan

A fortnight ahead of the next bi- monthly monetary policy review, Reserve Bank Governor Raghuram Rajan today said the “best tool” available with the central bank to control price rise is interest rate.

“Our best tool to control inflation is interest rate,” he said, adding that the government too has tools like increasing agricultural production and improving supply.

“Both need to work together and will work together.