RBI intervenes in FX mkts to smooth volatility: Subbarao
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)
- Tweet this
- Share this
- Digg this
- China building South China Sea island big enough for airstrip - report
- China's rate-cut likely to hurt banks, curb new loans to small borrowers
- Pakistani family sentenced to death over "honour killing" outside court
- Hitler watercolour fetches 130,000 euros at Nuremberg auction
- Magnitude 6.8 quake hits central Japan; no tsunami warning
Prime Minister Narendra Modi has a long list of pro-growth measures to implement over the next four months, but time may have already run out to breathe enough life into the economy to meet the tough 2014/15 fiscal deficit target without cuts. Article