The ongoing rupee devaluation and double-digit inflation may figure dominantly when a delegation of Indian Banks’ Association (IBA) meets the new Reserve Bank of India (RBI) governor, D Subbarao, on September 29 on the eve of the half yearly review of annual monetary policy.
The RBI will be reviewing its annual monetary policy for the first half on October 24. Speaking to FE, T S Narayanasami, IBA chairman and & managing director of Bank of India, who will lead the IBA delegation, said, “We would like to know from the RBI governor in what way to go at a time when the market is passing through a difficult situation due to the devaluating rupee and inflation. It has posed liquidity constraint for the banking industry.”
In fact, the global markets were reeling under a very bad condition today. Whatever happens globally, has its direct impact on the Indian economy, said Narayanasami adding “Let us close our books and wait and watch whatever was happening in the global market.”
While rupee has depreciated to the level of 46.23 against the greenback as on Thursday, inflation was hovering at 12.14% as per the latest figure available.