May 30, 2013 / 11:39 AM / 4 years ago

RBI to consider CAD, macro factors for policy decision

MUMBAI (Reuters) - The Reserve Bank of India will take into account macro economic factors and “more importantly” the current account deficit for policy decisions, Governor Duvvuri Subbarao said on Thursday.

Reserve Bank of India (RBI) Governor Duvvuri Subbarao smiles after arriving for a quarterly interest rate review briefing at the RBI headquarters in Mumbai January 29, 2013. REUTERS/Vivek Prakash/Files

He also said high current account deficit is leading to the rupee weakening.

India’s current account deficit widened to a record high 6.7 percent of GDP in the December quarter, driven by heavy oil and gold imports and muted exports, in a worse-than-expected performance.

Reporting by Neha Dasgupta; Editing by Anand Basu

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