MUMBAI 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
Prime Minister Narendra Modi urged more companies to make electronic and digital goods on Wednesday, reviving his campaign promise to bridge India's digital divide backed by over $70 billion in investment pledges. Full Article
India to provide roadmap for ending corporate tax exemptions in 45 days - official Full Article