Reserve Bank of India Deputy Governor Subir Gokarn said inflation remains high in the nation despite a good monsoon, driven by increases in food prices.
The central bank will take a “wait-and-watch” approach to managing interest rates in the immediate future, Gokarn said at a business conference in Mumbai today.
A liquidity deficit in the financial system, while desirable, has gone too far in recent weeks and may cause excessive volatility in short-term rates, he said.
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