* RBI Gov says govt can weigh on "ultimate inflation goal"
* Rajan says 6 pct CPI target "reasonable"
* RBI Gov calls for improved corp governance at state
(Updates with quotes from RBI governor, details, background)
By Neha Dasgupta and Suvashree Dey Choudhury
MUMBAI, Aug 6 Reserve Bank of India governor
Raghuram Rajan on Wednesday called the central bank's consumer
price index goal of 6 percent by January 2016 "reasonable", but
said the government would ultimately weigh in on the ultimate
The reference to the government comes after Rajan had
reiterated the RBI's goal of bringing down retail inflation to 8
percent by January 2015 and to 6 percent a year later, which
analysts said could reduce prospects of near-term rate cuts.
Rajan, in an interview with TV channel ET Now, also denied
inflation was the RBI's sole focus, noting the 6 percent
inflation target was achievable without a "substantial
sacrifice" on economic growth.
"Let's get it down to 6 (percent). That's a reasonable level
of inflation," Rajan said.
"Then you know, we can have a public debate, the government
is going to weigh in on that, what the ultimate inflation goal
Although the RBI has referred to consumer inflation targets
in previous public comments, the government of Prime Minister
Narendra Modi, elected in May, has yet to take a stand on the
The RBI has wide latitude in setting monetary policy, but it
is not statutorily independent from the government.
Rajan also called for improving corporate governance at
state-run lenders and said boards as well as incentive
structures for CEOs needed to be improved.
"We have to draw in people from the private sector who want
to give back themselves, and in that way you will get talent
into these public sector enterprises," he said.
The comments come after police arrested the chairman of
mid-sized state-run lender Syndicate Bank Ltd on
Saturday over allegations of taking bribes to grant loan
extensions to a company.
(Editing by Rafael Nam and Ron Popeski)