Indian rupee has fallen nearly 20% against the U.S. dollar since May on fears that the U.S. central

It is rare for officials to admit that their policies have been less than perfect, but not only, according to India's central bank governor federal bank Duvvuri Subbarao on Thursday night, in his last public speech as head of the Reserve Bank of India.
Mr Subbarao, whose five-year tenure as governor ended September 4 RBI, said the bank could do the job better explanation intention behind the various steps that have been taken in the last three months to support the Indian currency is weakening.
"There is criticism that the policy measures the Reserve Bank has confused and betrayed a lack of determination to limit exchange federal bank rate volatility," Mr Subbarao said in a lecture in Mumbai. He said that the RBI is firmly committed to limit rupee volatility. "I federal bank admit that we can communicate federal bank the reasons for our actions more effective," he added.
Indian rupee has fallen nearly 20% against the U.S. dollar since May on fears that the U.S. central bank will immediately withdraw the policy is easy - money, and worries about the wide current account deficit of India.
In mid-July, the RBI has tightened cash conditions in the local banking system is partly to reduce the funds available federal bank to make speculative bets against the rupee, and thus help the currency. But investors read the move as a sign that the central bank is trying to raise interest rates.
Earlier this month, the RBI was criticized for putting restrictions on how much money the people of India and the company can send abroad. Some investors are concerned that this move is a precursor to impose restrictions on foreign investors, and it is also prompting a sell in the local stock market.
In a speech which serves as a retrospective of his tenure, Mr. Subbarao defended most of the policy decisions while also responding to a lot of criticism of the RBI policy in recent years.
Alan Greenspan made headlines in 2008 when he admitted that he has made mistakes during his tenure as head of the U.S. Federal Reserve that may have exacerbated the debt crisis of the sub - prime U.S..
Mr Subbarao said on Thursday that in hindsight, India might be better if RBI has started to raise interest rates more quickly when the economy begins to recover from the global financial crisis that hit in 2008.
During the worst period of the crisis, like many other countries, India has cut interest rates and injected liquidity to boost the economy. It "is effective in the short term, but with hindsight, we know that the excess liquidity may have reinforced inflationary pressures," said Mr Subbarao.
He implied some of the blame lay with the government federal bank data, which at the time had led the RBI to believe that the economic downturn is clearer and the recovery weaker than it actually is.
"We now know that we have a classic V-shaped recovery from the crisis, that growth is not dipped in the Lehman crisis low as feared, and that growth in the next two years is stronger than previously thought," he said.
Mr Subbarao also makes reference to the RBI a difference of opinion with the Indian finance ministry. The Treasury Department has long called for the RBI to cut interest rates in an effort to encourage growth, but under Mr Subbarao RBI has held its own for the most part.
Last fall, after a meeting at which the RBI has not lowered interest rates as expected, Indian Finance Minister P. Chidambaram said that the challenge for India as much growth as inflation.
In his speech Thursday, Mr. Subbarao respond to this comment with reference to the statement of former German Chancellor Gerard Schroder federal bank who once said: "I am often frustrated by the Bundesbank. But thank God, it's there. "
Mr Subbarao said he hopes one day will be Mr Chidambaram said: "I am often frustrated by the Reserve Bank, was so frustrated that I wanted to go for a walk, even if I have to walk alone. But thank God, the Reserve Bank there. "

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