JOIN USReserve Bank of India (RBI) Governor Raghuram Rajan said that the central bank has noted the US Central Bank’s action, and it will continue to do what it has been doing.
“We have noted the Fed decision on Thursday. I presume it reflects their desire to wait for more information before they take a final view. Clearly, thus far the markets seem to have reacted somewhat benignly certainly toward us. What we’ll have to do is continue what we’ve been doing, which was anyways the intention regardless of the Fed decision,” Rajan told reporters on the sidelines of the fourth C K Prahalad Memorial Lecture organised by Ananta Aspen Centre and the Confederation of Indian Industry (CII).
The US Federal Reserve, in its meeting on Thursday, had decided to keep its rates on hold.
As far as policy actions are concerned, Rajan said that he would like to offer the standard disclaimer.
“Let me also quickly offer my standard disclaimer: For any hints on what we will do in the upcoming policy statement, please read the guidance in our last policy statement. I quote: ‘Significant uncertainty will be resolved in the coming months, including the likely persistence of recent inflationary pressures, the full monsoon outturn, as well as possible Federal Reserve actions. As the Reserve Bank awaits greater transmission of its front-loaded past actions, it will monitor developments for emerging room for more accommodation.’ Nothing I say in what follows is meant to offer further guidance, and please don’t read veiled meaning where none is intended,” Rajan said.