- BSE Sensex edges higher, TCS, Wipro, Infosys shares lead, Sun Pharma down 3.7%Raghuram Rajan may not unveil any 'gamechanger' policy, says StanchartRaghuram Rajan gets more headroom to do away with rupee restrictions as Fed stimulus staysIndia Inc wants 'out-of-box' solution from Raghuram Rajan
that 7.25 per cent is not coming back soon and further easing will be calibrated and data-dependent," he said.
Several economists expect Rajan to reverse some of the other rupee-supporting steps.
He might relax a requirement that banks meet 99 per cent of their cash reserve ratio on a daily basis. The minimum was increased from 70 per cent previously, which drained liquidity from money markets but also choked off credit.
Rajan took over at the RBI with what many observers warned were impossibly high expectations given the difficulty of revitalising an economy whose record-high current account deficit makes it especially vulnerable to 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.