July 17 (Bloomberg) -- Neeraj Seth, the Singapore-based head of Asian credit at BlackRock, which oversees $3.68 trillion worldwide, discusses the Indian rupee at a media briefing today:
“Given the changes that have happened in the last few weeks, including the change in the finance minister, with the prime minster taking on that responsibility there’s some increased awareness about the need for fiscal consolidation and the need for reforms.
“We have been a little bit more positive on the rupee in the short term. In order for the rupee to strengthen over time we still need some of the basic reforms to pave the path for future growth. That still has to happen.” Seth defines short term as the next few months.
On the impact of fiscal and monetary policies:
“On the fiscal side, there’s limited room given the high level of the exiting deficit. And on the monetary side, inflation is still running high.
“To make things more complicated, there’s a logjam on the political front which is not helping. Overall, there’s some room in the case of India on the monetary side but there’s limited room on the fiscal side that you can imagine to get the economy back on the growth track.”
To contact the reporter on this story: Lilian Karunungan in Singapore at at email@example.com.
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org