Raghuram Rajan's monetary policy first review to curb inflation Analysis
RBI governor Raghuram Rajan's decision to hike repo rates 25 basis to curb inflation in Friday, 20th September 2013 monetary policy review
Reserve Bank of India governor Raghuram Rajan goes ahead with his decision on moetary policy first review of his term in the office on 20th September 2013 with announcement of 25 basis points hike in repo rates. A move that is unexpected from industry and finance ministry after a decision on continuing stimulus from US bank in it's market.
Raghuram Rajan comes out with his clear stand and focus on curbing out of control inflation, wholesale price index and bringing stability in Indian currency in foreign exchange. These are some of the burning issues for Raghuram Rajan after joining office at Reserve Bank of India.
Raghuram Rajan's focus is to curb current account deficit with a strong, stable currency by the year end. First review of monetary policy might have negative impact on short term loans from banks, home loansand other infrastructure related lendings from banks.
Reserve Bank of India has already imposed several restriction on imports and custom duties and first monetary policy review strengthening internal reasons that can make Indian currency more stronger in coming days in foreign trades.
RBI governor Raghuram Rajan indictes possibility of easing repo rates with positive signs from forex market with indication of a stonger Indian currency and controlled inflation in days to come.