Rediff Logo
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Weather | Wedding | Women
Partner Channels: Auctions | Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel
Home > Money > Reuters > Report
April 19, 2001
  Money Matters

 -  Business Special
 -  Business Headlines
 -  Corporate Headlines
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff


 Search the Internet
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page

Fed cut favourable for Indian economy: Jalan

The overnight cut by the US Federal Reserve was a "favourable development" for the Indian economy, the head of the Reserve Bank of India said on Thursday, after presenting a monetary policy which left rates unchanged.

"This is a favourable development from our point of view," Reserve Bank of India governor Bimal Jalan told reporters when asked whether a cut in US rates is beneficial for the Indian economy.

"A benign interest rate environment abroad is better for us," he said.

In a surprise move, the Federal Reserve on Wednesday cut rates by a half point, sparking speculation among Indian bankers that the RBI could follow suit to maintain interest rate differentials between the two countries.

Earlier, unveiling the central bank's monetary policy for 2001/02 (April-March), Jalan said he wanted softer rates.

Monetary & Credit Policy 2001-2002 (First Half)

Back to top
(c) Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Tell us what you think of this report