MUMBAI (Reuters) - The RBI lets the exchange rate be market determined but intervenes to smooth volatility and prevent disruptions to macro-economic stability, Reserve Bank of India Governor Duvvuri Subbarao said in a speech in London on Wednesday.
"We let our exchange rate be largely market determined, but intervene in the market to smooth excess volatility and/or to prevent disruptions to macroeconomic stability," Subbarao said, according to a copy of the speech posted on the RBI web site on Thursday.
Subbarao also said credible fiscal consolidation is a pre-condition for stabilising inflation and in securing non-inflationary growth.
For full speech double click: link.reuters.com/fad79t
(Reporting by Swati Bhat; Editing by Rafael Nam)
Trending On Reuters
Rescuers dug with their bare hands and bodies piled up in Nepal on Sunday after an earthquake devastated the heavily crowded Kathmandu Valley, killing more than 2,200 people, and triggered a deadly avalanche on Mount Everest. Full Article | Pictures
RBI chief Rajan calls for formal financing routes for farmers - report Full Article