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Written by Newswriter1 in Forex News on 20 September 2013 14:32 FXstreet.web.id ubi - Reserve Bank of India unexpectedly raised the repo rate, sends Sensex fell more than 500 points. Raghuram Rajan's new Governor RBI raised repo rate by 25 bps to 7.50 percent. RBI also lowered the marginal standing facility rate 75 bps to 9.50 percent. Rajan stated that the purpose of the RBI is to normalize the behavior and operation of monetary policy - which was canceled senagai step, the goal is to normalize the behavior and operation of monetary policy to enable the LAF repo rate to resume its role as an operational policy rate. Rajan raised concerns about the strength of rupee, capital outflows driven higher in recent weeks, due to concerns that the U.S. Federal Reserve will cut the size of asset purchases that raise the monthly volatility of the foreign exchange market. Now this booster has been resolved, the focus has switched to internal determinants Rupee, ubi particularly the Indian fiscal deficit and domestic inflation. Rajan emphasizes that, ketia RBI will always focus on inflation, RBI was not the only determinant of inflation. He is keen to stress that the RBI is not able to exert authority over food inflation, great pain to the Indian economy. While speech Rajan had sent the Sensex fall, has had the desired effect on the rupee, weakening USDINR to INR61, 4850, the weakening of INR61, 8550 ahead of the announcement of the central bank. Newsroom FXstreet.web.id **, ** FXstreet.com
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