MUMBAI The Reserve Bank of India's interest rate moves will be guided more by domestic factors than external ones, Governor Raghuram Rajan told analyts in a conference call on Wednesday, a day after he left rates unchanged, as widely expected.
The central bank governor said the RBI does not manage liquidity through foreign exchange markets, and added it could consider increasing the foreign debt limits, should the existing limits fill up.
The RBI kept its key policy repo rate unchanged on Tuesday, and voiced a commitment to bringing down inflation that convinced many analysts that markets will have to wait until next year for the next cut in rates.
(Reporting by Suvashree Dey Choudhury and Neha Dasgupta, Writing by Swati Bhat; Editing by Sunil Nair)
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The Reserve Bank of India kept its policy rate on hold at 7.25 percent on Tuesday, as widely expected, while leaving the door open to ease further depending on the inflation outlook and how swiftly banks lower their lending rates. Full Article | Full Coverage