• hard to act on a sustainable basis to keep specific ruppe value

Reserve Bank of India gov on the wires

  • at times like March we tend to provide more short-term liquidity through term repos
  • govt has to be supportive in the process of inflation targetting and has been in the past
  • real interest rate of 1.5-2.0% at this point of the economic cycle is appropriate
  • not promising fiscal consolidation forever but RBI remains watchful