Monetary policy: Raghuram Rajan seen hawkish on debut, may roll back some FX steps

Sep 19 2013, 09:56 IST
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RBI Governor Raghuram Rajan makes his first monetary policy statement on Friday with expectations he may scale back some of the emergency measures. RBI Governor Raghuram Rajan makes his first monetary policy statement on Friday with expectations he may scale back some of the emergency measures.
SummaryWith price pressures rising & growth at decade low, Rajan must find a fine balance in policies.

an exodus of foreign fund flows, especially if the Fed tapers its stimulus programme.

Additionally, the weak coalition government of Prime Minister Manmohan Singh has had difficulty pushing through policy reforms, and with national elections due by May, little economic reform is expected in the near term.

RBI-watchers said the rupee, at 63.25 to the dollar on Wednesday, is not yet out of the woods and that it would be premature to wind back significantly the support measures.

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