Anup Tiwari
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- 10 Aug 2013
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NEW DELHI: While expressing
optimism about some policy
initiatives by the government, RBI
governor Raghuram Rajan on
Tuesday flagged certain worries on
the domestic and international front
that held him back from cutting
interest rates further in the
monetary policy review.
RBI has indicated that "key to
further easing are data that confirm
continuing disinflationary pressures.
Also critical would be sustained high
quality fiscal consolidation...".
"Given that there have been no
substantial new developments on
the disinflationary process or on the
fiscal outlook since January 15, it is
appropriate for the Reserve Bank to
await them and maintain the
current interest rate stance," Rajan
said while explaining the rationale
behind status quo on rates.
optimism about some policy
initiatives by the government, RBI
governor Raghuram Rajan on
Tuesday flagged certain worries on
the domestic and international front
that held him back from cutting
interest rates further in the
monetary policy review.
RBI has indicated that "key to
further easing are data that confirm
continuing disinflationary pressures.
Also critical would be sustained high
quality fiscal consolidation...".
"Given that there have been no
substantial new developments on
the disinflationary process or on the
fiscal outlook since January 15, it is
appropriate for the Reserve Bank to
await them and maintain the
current interest rate stance," Rajan
said while explaining the rationale
behind status quo on rates.