22 Nov 2013
Flash: RBI Governor Rajan continues with aggressive agenda - BBH
FXstreet.com (Barcelona) - Reserve Bank of India's Governor Rajan continues to push with his aggressive reforms, notes Marc Chandler, Global Head of Currency Strategy at BBH.
Key Quotes
"In an interview with the FT, the governor sees “a dramatic remaking of the banking landscape.” This includes greater freedom for foreign banks to expand and more licenses for domestic private sector institutions. At the same time, the central bank is providing extra liquidity in the form of an $800 mln refinancing line for small businesses."
"All in all, we continue to commend Rajan’s continued efforts to boost India’s financial system and we think they are positive for local assets. He has also delivered hawkish surprises on the rate front. We just hope that the government follows suit on the fiscal side and pushes ahead with more reforms there as well. The twin deficits remain key concerns for India."
Key Quotes
"In an interview with the FT, the governor sees “a dramatic remaking of the banking landscape.” This includes greater freedom for foreign banks to expand and more licenses for domestic private sector institutions. At the same time, the central bank is providing extra liquidity in the form of an $800 mln refinancing line for small businesses."
"All in all, we continue to commend Rajan’s continued efforts to boost India’s financial system and we think they are positive for local assets. He has also delivered hawkish surprises on the rate front. We just hope that the government follows suit on the fiscal side and pushes ahead with more reforms there as well. The twin deficits remain key concerns for India."