Rajan exudes confidence, rupee gains 42 paise against dollar
RBI governor-designate Raghuram Rajan today said India faces a challenging environment but it can be overcome. He, however, did not reveal measures the government is considering to revive growth.Updated: Aug 09, 2013 01:45 IST
Reserve Bank of India (RBI) governor-designate and chief economic adviser Raghuram Rajan on Thursday said India faces a challenging environment but it can be overcome. He, however, did not reveal measures the government is considering to revive India's growth.
"It is a challenging environment and we will overcome the challenges," Rajan told reporters after a meeting of the RBI's central board. Rajan was a special invitee to the meeting chaired by D Subbarao.
Meanwhile, the rupee on Thursday gained 42 paise, its best daily gain since July 24, to 60.88 per dollar on Thursday against Wednesday's close of 61.30.
Rajan's appointment as the 23rd governor comes amid unprecedented macroeconomic challenges, most visible in the rupee, which has lost over 15% since the beginning of May this year. Amid external sector risks, the domestic economy faces a widening current account deficit, high consumer price inflation and slowing growth.
"I look forward to working with everybody at the Reserve Bank. It's a great institution and I am looking forward to it," Rajan said.
In the run-up to his formal takeover, he will join the central bank as an officer on special duty before assuming charge from Subbarao on September 5.