RBI's rate moves to be guided more by domestic factors, says Rajan

The Reserve Bank of India's (RBI) interest rate moves will be guided more by domestic factors than external ones, Governor Raghuram Rajan told analyts, a day after he left rates unchanged, as widely expected.

Rajan said the RBI does not manage liquidity through foreign exchange markets, and added it could consider increasing the foreign debt limits, should the existing limits fill up.

The central bank had on Tuesday kept its key policy repo rate unchanged and voiced a commitment to bringing down inflation that convinced many analysts that markets will have to wait until next year for the next cut in rates.

(Reuters)