"There is some semblance of calm returning, " says Duvvuri Subbarao, governor of the central bank.
Inflation has come off, but is still high at over 7%, Mr. Subbarao said.
Reserve Bank of India governor Duvvuri Subbarao said inflation remained at "elevated levels" requiring steps to lower "inflationary expectations".
MUMBAI--India is likely to record its widest-ever current-account deficit this fiscal year, central bank Governor Duvvuri Subbarao said Monday.
The bank is concerned about the size of the deficit as well as the way India funds it, Mr. Subbarao said.
"I haven't had anybody say these things are weird, " Mr. Subbarao said.
The head of the central bank, Duvvuri Subbarao, wrote in a recent report that lowering interest rates would "only aggravate inflationary impulses without necessarily stimulating growth".
Mayur Subbarao of Bittermens Spirits, a liquor company in New Orleans, also has been experimenting with Mr. Smith's kelp by infusing various boozy concoctions with it.
Mr. Subbarao, while speaking at an event in the western Indian city of Ahmedabad, said the RBI will factor in the current-account gap while formulating its monetary policy.
Mr. Subbarao said India's retail inflation is still a concern.
The RBI expects commercial banks to pass on the benefits of the rate cuts to their customers over the next three-four months, Governor Duvvuri Subbarao said at a press conference.
At the same time, in an exclusive interview with the BBC, Duvvuri Subbarao, the governor of RBI, said the central bank may reverse its policy and shift its focus towards boosting growth.
BBC: India industrial output rebounds easing growth concerns
India is financing its current-account deficit with volatile foreign fund inflows into the capital markets rather than foreign direct investment, which is a matter of concern, Mr. Subbarao said at an event in Mumbai.
Last week, in their pre-policy meeting with RBI governor D Subbarao, bankers had argued for a pause arguing that they are yet to pass on the previous rate hikes to customers, the Times of India reported on Monday.
Under the present governor, Duvvuri Subbarao, a softly spoken figure, it has made a tough series of rate rises in the past two years to try to curb a stubborn spell of inflation (a battle that may not be over).
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