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Current interest rates are appropriate: Reddy
Mumbai, May 18: Reserve Bank of India said today current interest rates were appropriate and it would maintain `status quo` in monetary policy to accord stability and provide conducive macroeconomic environment for growth.
Mumbai, May 18: Reserve Bank of India said today
current interest rates were appropriate and it would maintain "status quo" in monetary policy to accord stability and provide conducive macroeconomic environment for growth.
"On the current assessment, interest rates are
appropriate," RBI Governor Y V Reddy told reporters after
unveiling the annual policy for 2004-05 here.
The Central Bank would maintain status quo in conduct of monetary policy and pursue interest rate environment that was conducive for growth, macroeconomic and price stability, he added.
It was essential to recognise that interest rates in major economies are likely to harden while the adjustments in currency imbalances would continue to take place, he added.
On the volatility in the financial markets including that of foreign exchange, Reddy said RBI has been able to avoid any excessive undesirable volatility.
The exports, imports and trade deficit are expected to grow in 2004-05 but RBI expects to have comfortable situation on the current account, aided by remittances and software exports, he added.
RBI would give priority to improvement of credit flow to small, medium size units, agriculture and infrastructure, the Governor said.
The relation with the government stands on the basis of autonomy in operational matters, harmony on policy issues and co-ordination for structural reforms, Reddy said.
Bureau Report
The Central Bank would maintain status quo in conduct of monetary policy and pursue interest rate environment that was conducive for growth, macroeconomic and price stability, he added.
It was essential to recognise that interest rates in major economies are likely to harden while the adjustments in currency imbalances would continue to take place, he added.
On the volatility in the financial markets including that of foreign exchange, Reddy said RBI has been able to avoid any excessive undesirable volatility.
The exports, imports and trade deficit are expected to grow in 2004-05 but RBI expects to have comfortable situation on the current account, aided by remittances and software exports, he added.
RBI would give priority to improvement of credit flow to small, medium size units, agriculture and infrastructure, the Governor said.
The relation with the government stands on the basis of autonomy in operational matters, harmony on policy issues and co-ordination for structural reforms, Reddy said.
Bureau Report