"If China revalues [the renminbi], it will have a positive impact on our external sector," Mr Subbarao said.

“如果中国让[人民币]升值，那将对我们的对外部门产生正面影响，”苏巴拉奥表示。

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Inflation has come off, but is still high at over 7%, Mr. Subbarao said.

WSJ: Subbarao Warns of Widest Current-Account Deficit

The bank is concerned about the size of the deficit as well as the way India funds it, Mr. Subbarao said.

WSJ: India RBI Warns on Inflation, Current-Account Deficit

"I haven't had anybody say these things are weird, " Mr. Subbarao said.

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