Raghuram Rajan says Indian rupee gaining to 45-50 to US dollar would hit exports

Apr 02 2014, 17:19 IST
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The RBI would rethink its stance if there is a 'substantial' change of inflation, up or down. PTI The RBI would rethink its stance if there is a 'substantial' change of inflation, up or down. PTI
SummaryThe RBI would rethink its stance if there is a 'substantial' change of inflation, up or down.

Reserve Bank of India Governor Raghuram Rajan told a TV channel a "substantial" strengthening in the Indian rupee to 45 or 50 per US dollar could hit exports, although he added the RBI was fine with "a certain amount of leeway" in the currency.

Raghuram Rajan also said during a CNBC-TV 18 interview that the RBI does not want to declare victory on inflation yet, despite keeping interest rates on hold on Tuesday as widely expected.

The RBI would rethink its stance if there is a "substantial" change of inflation, up or down, Raghuram Rajan said.

RBI deputy says banks should cut HTM holdings

Reserve Bank of India Deputy Governor H.R. Khan said banks needed to bring down the ratio of debt under the held-to-maturity category to 23 percent to comply with a previous mandate asking lenders to do so by the end of March.

Also read: Raghuram Rajan's RBI allows overseas investors to hedge currency risks

Also read: Raghuram Rajan's full speech

Also read: Monetary policy review: Guv Raghuram Rajan keeps RBI rates unchanged

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