RBI governor dispels CAD fears

The Reserve Bank of India (RBI) is no longer seeing current account deficit (CAD) as an impediment to a cut in key interest rates. Allaying CAD fears, RBI Governor D Subbarao said on Wednesday that there were four reasons why another cut in interest rate would not result into wider CAD. He said a rate cut would unlikely to boost import demand as the growth is sluggish. Secondly, rate cut in January showed that it would enhance the country’s export competitiveness. read more

Thumbnail

The Reserve Bank of India (RBI) is no longer seeing current account deficit (CAD) as an impediment to a cut in key interest rates. Allaying CAD fears, RBI Governor D Subbarao said on Wednesday that there were four reasons why another cut in interest rate would not result into wider CAD. He said a rate cut would unlikely to boost import demand as the growth is sluggish. Secondly, rate cut in January showed that it would enhance the country’s export competitiveness. read more

[via Stock Watch – Stock Specific News]

Follow us @enterpriseheat – lists / @sectorheat

Leave a Reply

Your email address will not be published. Required fields are marked *