Raghuram Rajan hopes, the decline in the rupee will not continue

Regarding the suggestion of NRI bond to pause the rupee fall in the rupee, Rajan said that this is a weapon that is in your arsenal.

Former RBI governor Raghuram Rajan (file photo)

Mumbai: Former Reserve Bank Governor Raghuram Rajan expressed hope that the uninterrupted decline in the rupee will not continue as the central bank is raising the interest rate properly in order to control inflation. Due to the fear of a global trade war, the rupee rose above 72 against the US dollar and reached level of 72.45. He said that it is important for the RBI that he is consistently indicating that he will keep inflation under control. This gives investors a confidence that there will be no uninterrupted decline in the rupee as the inflation will finally be in control.

Regarding the suggestion of NRI bond to pause the rupee fall in the rupee, Rajan said that this is a weapon that is in your arsenal. RBI has recently increased the policy rate twice to inflation concerns.

Meanwhile, Rajan has said about the trapped debt that it is mainly due to bank officials being more optimistic and softening in growth.

In a note given to the Chairman of the Estimation Committee, Murli Manohar Joshi, he said, "The government decision was delayed in both the UPA government and after that, due to various problems related to the government like the possibility of investigation with the allocation of coal mines." Rajan said that the cost of the project increased and they started getting stuck. There was a problem in repaying the loan.