No shift in monetary policy stance - RBI

MUMBAI, SEPT. 15. The Reserve Bank of India today said that there would be no shift at present to its monetary policy stance of keeping the interest rates stable with adequate liquidity in foreign exchange.

``The RBI will continue to watch the markets very closely and will be prepared to sell foreign exchange directly or indirectly, if it considers it necessary to do so, to meet any unusual supply demand gap in view of the prevailing uncertainties", a statement from the RBI said here today responding to developments in financial markets.The Indian rupee vis-a-vis the dollar yesterday ended at the lowest ever close of 47.82/84, due to hectic dollar demand from banks amidst dwindling supplies following fears of retaliation moves by the U.S.The apex bank has `+more than adequate liquidity' in foreign exchange with its reserves at an all time high of over $45 billion, it said.Referring to the impact of terrorist attacks on foreign exchange, money and government securities markets, the RBI said ``It expects any temporary hiccups to disappear and markets to function normally as soon as the present international uncertainties become clear".

Following Tuesday's attack, the Bombay Stock Exchange sensitive index has been witnessing a downfall and ended the week below the 2900-level at 2830.12 against last weekend's close of 3198.49, a net loss of 368.28 points.

- PTI

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Section  : Business
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