Chennai: The Reserve Bank of India does not have any target for the rupee’s level but will use all instruments it has to reduce volatility, RBI Governor D Subbarao said yesterday.
He also said the bank’s monetary policy transmission was not agile as commercial banks are reluctant to pass on the benefit of interest rate reduction to borrowers, and that not all applicants will get a banking licence.
Speaking to reporters after the bank’s board meeting, Subbarao said the bank had no exchange rate target. The rupee fell to over Rs.60 to the US dollar recently.
“I cannot say anything more than standard policy of RBI, we employ instruments which are available to us in order to manage volatility. We don’t have exchange rate or target plan, we try to manage the currency movement by using all the instruments,” Subbarao said.
IANS
