Bangalore, June 16: Terming India's economy as the "fastest growing", despite drought and global economic conditions, Reserve Bank of India governor Bimal Jalan today said the country's monetary liberalisation policy was being adopted by other nations in the Asian region. "Despite drought and problems associated with world economy, the Indian economy is the fastest growing. The economy is positive on the external front," Jalan told reporters here on the sidelines of the 32nd annual meeting of the Asian clearing union.

"The monetary policies of India are being adopted by other countries in the region and other member states of the ACU," Jalan said.

Declining to comment on the possible impact of the delay in monsoon on the economy, he said, "let's wait and watch".

Asked whether the issue of a "South Asia monetary union" would be raised during the deliberations, Jalan said, these discussions should be held at the government level and this was not the forum for it to be discussed.
RBI deputy governor Rakesh Mohan said that the inflation rate at 5.45 per cent was consistent with the monetary policy and it was expected to go down further in the second quarter.

He said that there was no move to change the repo rate and the capital controls on current account convertability would remain.

Bureau Report