Rate moves to be guided more by domestic factors: RBI's Rajan

MUMBAI Wed Aug 6, 2014 10:58am IST

The Reserve Bank of India (RBI) Governor Raghuram Rajan speaks during a news conference after the bi-monthly monetary policy review in Mumbai August 5, 2014.  REUTERS/Danish Siddiqui

The Reserve Bank of India (RBI) Governor Raghuram Rajan speaks during a news conference after the bi-monthly monetary policy review in Mumbai August 5, 2014.

Credit: Reuters/Danish Siddiqui

Related Topics

MUMBAI (Reuters) - 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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

Monsoon Season

Monsoon Season

India's 2014 monsoon ends with double-digit rain deficit .  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage