RBI to decide on rate cut in Sept
"You cannot say when the rate cut will come. Wait for our September policy," RBI Deputy Governor H R Khan said at the sideline of a function organised by Institute of Chartered Accountants of India (ICAI) here.
Stating that RBI was taking steps for flow of capital with focus on creation of non-debt capital, Khan said "We are trying to improve capital flow through FDI and NRI deposits."
On the market slide, he said RBI was making efforts to contain rate volatility. "Our approach is that there should be orderly movement of rates in the market and there should not be any volatility."
The RBI deputy governor said import of the yellow metal has come down and a committee formed by the apex bank will come out with its report in two-three months. "Let us see what can be done to contain gold demand," he said.
Earlier addressing ICAI`s conference, Khan said focus should be on the demestic exploration of oil and gas as 70 per cent of it were being imported while 100 per cent of gold requirement was also coming from other countries. He also stressed on the increase of agricultural productivity in order to survive the impact of the global financial crisis.