- 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