The Hindu : `No impact on Indian economy'

Online edition of India's National Newspaper
Friday, Jun 27, 2003

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`No impact on Indian economy'

MUMBAI JUNE 26. Ruling out a repo rate cut in near future, The Deputy Governor of the Reserve Bank of India, Rakesh Mohan, said today the 0.25 per cent cut by U.S. Federal Reserve would have no impact on the macro economy and monetary conditions in India.

"The RBI's financial market committee met today to note Federal Reserve's action and it saw no difference in macro economy and monetary conditions within the country, therefore there is no reason to change our policy stance,'' Dr. Mohan told reporters here on the sidelines of a function to launch the multi-banking system for collection of central excise duties.

Referring to the repo rate, he said, "There will be no cut for quite some time since neither the type of inflation nor monsoon situations are yet clear.''

On inflation, which the RBI has placed in the range of 5-5.5 per cent for this fiscal, he maintained that the policy stance continued on this front. Referring to the foreign inflows and arbitrage opportunities, he said the central bank would soon come out with details on composition of inflows for fiscal 2002-03. — PTI

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