NEW DELHI The government has narrowed its list of candidates to become the next governor of the Reserve Bank of India to four, a senior official told Reuters, as it set in motion the process of naming a new Monetary Policy Committee (MPC).
MUMBAI The Reserve Bank of India (RBI) will have more room to cut interest rates if the central bank gains confidence in reaching its 5 percent target for consumer inflation by March 2017, said Governor Raghuram Rajan on Wednesday.
MUMBAI The Reserve Bank of India is looking for room to reduce interest rates further, but there are concerns over upward pressures on food and commodity prices, Governor Raghuram Rajan said after leaving rates unchanged at a policy review on Tuesday.
MUMBAI The Reserve Bank of India (RBI) kept its policy interest rate unchanged at a five-year low of 6.50 percent on Tuesday, while signalling the prospect of another cut later this year if monsoon rains dampen upward pressure on food prices.
Key points from Rajan's press conference
RBI Governor Raghuram Rajan spoke to the media after leaving policy interest rates unchanged at a policy review on Tuesday, June 7.
- Transmission of policy rate cuts still remains work in progress
- Committed to supply short term liquidity to support monetary stance
- We are working with the government on bank clean-up
- Idea to move long term liquidity to neutral position from deficit will take some time
- Will be 'opportunistic' in getting to a liquidity neutral zone
Rajan on FCNR
- Will step in in case of extreme volatlity once a concessional swap facility for non-residents starts to mature in coming months
- Leverage portions of FCNR deposits will not be renewed, outflow could be $20 billion
- Don’t want to encourage complacency that we will bail people out by providing dollars on FCNR Maturity