Hours after the Reserve Bank of India said that stabilising the battered rupee is its priority, Chief Economic Adviser to Finance Ministry Raghuram Rajan said the RBI’s action in this regard must not hurt growth too much.

“The RBI has come up with measures to put stability in the exchange rate. With these measures I hope there should not be serious consequences to growth. We must try to ensure that growth is not diminished,” Dr. Rajan told a summit organised by the NSE, through a video link, this evening.

Hinting at a status-quo in Tuesday’s policy review, the RBI’s first quarter macroeconomic and monetary development report said: “The priority for monetary policy now is to restore stability in the currency market so that macro-financial conditions remain supportive of growth,” even though it admitted that growth recovery is likely to be slower.

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