The Hindu : Business : RBI to stick to projections despite global uncertainties

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Friday, Jul 15, 2005

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RBI to stick to projections despite global uncertainties

— Photo: Bijoy Ghosh

TAKING STOCK: Y. V. Reddy, Governor, Reserve Bank of India (centre) with Deputy Governors, Rakesh Mohan (left) and V. Leeladhar, at the central board meeting of the Reserve Bank of India in Chennai on Thursday.

CHENNAI: Reserve Bank of India Governor Y. V. Reddy on Thursday said global economic uncertainties had surpassed earlier estimates, but maintained that the apex bank would stick to the "basic projections'' till the review of the monetary policy.

"As far as the outlook for the economy is concerned, a formal response will come during the monetary policy review (later this month), Dr. Reddy told reporters after the RBI's Central Board of Directors meeting here.

He said the RBI was analysing the situation at this stage and hoped to come out with the update on the economy and policy at the quarterly review at the end of this month. Dr. Reddy said the financial markets were "by and large'' stable and this was a "good news.''

Asked about the impact of the monsoon on the economy, Dr. Reddy said there was nothing to show that there would not be a normal monsoon.

With respect to money markets, Dr. Reddy said the Reserve Bank of India was taking all steps to ensure the stability of the markets.

The meeting, chaired by Dr. Reddy, was attended by deputy governors — Rakesh Mohan, V. Leeladhar and Shyamala Gopinath — and other directors including Y. H. Malegam, Infosys Technologies' Chief Mentor N. Narayana Murthy, Prof. Mihir Rakshit, K. Madhav Rao, Amrita Patel and D. S. Brar. — PTI

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