Current account deficit will be checked at $56 billion : Rajan

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Reserve Bank of India (RBI) Governor Raghuram Rajan today held a press conference and said that current account deficit for the current fiscal will be checked at $56 billion, which is much lesser last year’s $88 billion.

Here are the highlights from the conference:

  • There has been some turmoil in financial markets all over the world over Fed tapering concerns
  • Current account deficit this year will be $56 billion
  • Not worried over funding current account deficit
  • Majority of oil marketing companies’ dollar demand back in market
  • Major debt outflows haven’t returned
  • More FII debt outflow is not a concern
  • Factory output data has disappointed
  • Food inflation still worryingly high
  • Next Monday an OMO or open market operations of Rs. 8,000 crore
  • Seeing some tightness in liquidity
  • To maintain adequate liquidity
  • Concerned about weak economy
  • RBI concerned over inflation as well as growth
  • Expect stronger growth in second half of FY14
  • There is no fundamental reason for volatility in the rupee
  • Not ruling out US taper effect
  • No timeline on bond index inclusion

Source : Profit NDTV

http://profit.ndtv.com/news/economy/article-raghuram-rajan-says-current-account-deficit-will-be-checked-at-56-billion-372128