Zee Media Bureau
New Delhi: The RBI Governor Raghuram Rajan on Monday said that there is no apprehension in using the reserves to reduce volatility in rupee. He was addressing the FIBAC conference.
Speaking on the continued market volatility from last week, RBI Governor Raghuram Rajan said that relative to other countries, India is in a good position."While I don`t want to opine on future directions of markets, I would say, relative to other countries India is in a good position," said Rajan.
Also read: Low inflation, not public pleading, should drive rate cut: RBI
“I wish to reassure markets macroeconomic factors under control, the country has $380 billon of forex reserves as and when to be used,” Rajan said.
The central bank has consistently maintained that the country has enough foreign reserves.
Rajan also said, once market volatility settles down, India should emerge again as an investment destination of choice. He also said that the crude oil prices may remain soft for a year or two.
Rajan hints at lower rates as market rout gathers speed and said that the central bank will look at emerging room for more accommodation.
“Low commodity prices played its part in bringing inflation down,” Rajan said. He pointed that although consumer inflation has fallen sharply, inflation expectations among the public has gone up."Must help growth by reducing inflation as per glide path," he further said.
With Agency Inputs
