FM hints at hot money curbs (Business Standard 25th Jan 2008)
Moderates 2008-09 growth projections to 8.5%; rules out Indian sovereign wealth fund.
Union Finance Minister P Chidambaram said India is compelled to “moderate” excessive flows of speculative capital due to aggressive interest rate cuts by the US Federal Authority that sharply widened interest rate differentials.
He, however, ruled out capital controls at this juncture or in future by suggesting that India always welcomed foreign direct investment as well as savings from non-resident Indians.
The Reserve Bank will adopt “moderating” measures to ensure that excessive speculative flows did not aggravate inflationary pressures in the economy, he said. The statement is significant just ahead of the central bank’s review of its monetary policy due September 29. More
Moderates 2008-09 growth projections to 8.5%; rules out Indian sovereign wealth fund.
Union Finance Minister P Chidambaram said India is compelled to “moderate” excessive flows of speculative capital due to aggressive interest rate cuts by the US Federal Authority that sharply widened interest rate differentials.
He, however, ruled out capital controls at this juncture or in future by suggesting that India always welcomed foreign direct investment as well as savings from non-resident Indians.
The Reserve Bank will adopt “moderating” measures to ensure that excessive speculative flows did not aggravate inflationary pressures in the economy, he said. The statement is significant just ahead of the central bank’s review of its monetary policy due September 29. More
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