Duvvuri Subbarao, governor of the Reserve Bank of India, speaks on interest rates after the central bank today left the repurchase rate unchanged at 8.5 percent. The decision matched all 14 estimates in a Bloomberg News survey.
Subbbarao spoke to reporters in Mumbai.
“We’ve taken into account the inflation situation and the moderation in growth. For the moment we’ve decided to stay with the repurchase rate as it is and have also retained the cash reserve ratio where it is.
‘‘We will manage liquidity through open market operations, should there be a constraint.
‘‘The rupee is putting pressure on inflation, which we have acknowledged in the statement.
‘‘I cannot really speculate on when we might start cutting rates but certainly that is an action on the way forward.
‘‘We are concerned about growth moderating.’’