Generally, the strong pound has been a burden on UK manufacturing, and the Bank of England seems to be taking this into account when deciding on monetary policy.
The longer-term challenge for the Fed and other central banks is to build a new monetary-policy framework that takes account of recent structural changes in the global economy, such as the integration of China.
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.