RBI Governor Raghuram Rajan today kept repo rate unchanged at 6.5 per cent at the central bank's bi-monthly policy review. Dr Rajan briefed the media on RBI's policy stance.
Here is what Dr Rajan said:
-Stance of RBI's monetary policy remains accommodative
-RBI has covered to account for outflow of FCNR deposits
-RBI has infused fair amount of liquidity in markets
- RBI to review marginal cost lending rate framework
-RBI keeping a watch on monsoon progress and food prices
-There are potential risks to inflation
-RBI may sell dollars in case of extreme volatility in forex market due to outflows related to FCNR deposits
- I am sure that you will know when a decision is reached on my second term as RBI chief
- Broadly, the RBI is in an easing mode
- Working with government on bank clean-up, it is work in progress
-RBI deputy government Urjit Patel: At the moment, oil prices are not a cause for concern
- RBI deputy government Urjit Patel :Crude prices between $40 to $50 a sweet spot, don't see current account deficit and remittances to be adversely impacted
-RBI not setting up stressed asset fund, we have given our views to the government on it
-There is a paucity of credit demand in banking system from some sources
Here is what Dr Rajan said:
-Stance of RBI's monetary policy remains accommodative
-RBI has covered to account for outflow of FCNR deposits
-RBI has infused fair amount of liquidity in markets
- RBI to review marginal cost lending rate framework
-RBI keeping a watch on monsoon progress and food prices
-There are potential risks to inflation
-RBI may sell dollars in case of extreme volatility in forex market due to outflows related to FCNR deposits
- I am sure that you will know when a decision is reached on my second term as RBI chief
- Broadly, the RBI is in an easing mode
- Working with government on bank clean-up, it is work in progress
-RBI deputy government Urjit Patel: At the moment, oil prices are not a cause for concern
- RBI deputy government Urjit Patel :Crude prices between $40 to $50 a sweet spot, don't see current account deficit and remittances to be adversely impacted
-RBI not setting up stressed asset fund, we have given our views to the government on it
-There is a paucity of credit demand in banking system from some sources
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