RBI Governor Raghuram Rajan reiterated that the central bank would not target an exchange rate for the rupee and would only intervene to curb volatility.
New Delhi: Reserve Bank of India Governor Raghuram Rajan said on Saturday the government's 2016-17 Budget had been "fiscally prudent", and the establishment of a monetary policy committee to set interest rates would help the central bank fight inflation.
The comments, at a speech in New Delhi, build on comments earlier in the day when Mr Rajan had said the central bank's board had praised the Budget unveiled by the government in a meeting with Finance Minister Arun Jaitley.
"The recent central budget emphasized fiscal prudence and adhered to past commitments, even while allocating resources towards capital spending and focusing on structural reforms, especially in agriculture," Mr Rajan said.
He also reiterated the RBI would not target an exchange rate for the rupee and would only intervene to curb volatility.
The RBI would focus on steadily increasing foreign investment limits in government bonds, he said.
The comments, at a speech in New Delhi, build on comments earlier in the day when Mr Rajan had said the central bank's board had praised the Budget unveiled by the government in a meeting with Finance Minister Arun Jaitley.
"The recent central budget emphasized fiscal prudence and adhered to past commitments, even while allocating resources towards capital spending and focusing on structural reforms, especially in agriculture," Mr Rajan said.
He also reiterated the RBI would not target an exchange rate for the rupee and would only intervene to curb volatility.
The RBI would focus on steadily increasing foreign investment limits in government bonds, he said.
© Thomson Reuters 2016
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