Ready to act on any ‘disorderly behaviour’: Raghuram Rajan on Brexit

By: | Published: June 24, 2016 12:41 PM

The Indian economy has good fundamentals, low short-term external debt and sizeable foreign reserves, said Raghuram Rajan.

RaghuramRaghuram Rajan said we are ready to act when there is disorderly conduct in the markets. (PTI)

Reserve Bank Governor Raghuram Rajan today said the central bank was watching markets closely on the fallout of UK voting for exit from the European Union and was ready to act if there was any disorderly behaviour.

In a statement, Rajan said it looks increasingly clear that the United Kingdom has voted to exit the European Union.

“The RBI is watching all the markets… we are ready to act when there is disorderly conduct, disorderly behaviour (in the markets),” he said.

Markets, he said, are trying to factor the consequences of Brexit, which has already led to sharp corrections in financial markets around the world.

“We are prepared to act if necessary,” he said.

The Indian economy has good fundamentals, low short-term external debt and sizeable foreign reserves, he said, adding these should stand the country in “good stead in the days to
come.”

“Reserve Bank is continuously maintaining a close vigil on market developments, both domestically and internationally, and will take all necessary steps, including liquidity support (both dollar and rupee), to ensure orderly conditions in financial markets,” he added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition