UK result a shock but RBI prepared: Rajan

Basel (Switzerland), June 24 (IANS) RBI Governor Raghuram Rajan on Friday said though Britain’s decision to quit the European Union (EU) was a shock, India’s apex bank was ready to act when necessary.

“RBI is watching the markets. It is very ready to act where there is disorderly conduct of the markets. And we are prepared to act,” Rajan told CNBC TV18.

The Governor said the Reserve Bank of India had prepared for this outcome too though polls had suggested confidence in the ‘Remain’ vote on Brexit.

“In any kind of market volatility, there is opportunity also. Some movement in currency is warranted. We are watching all the markets and prices though it is not an immediate shock for liquidity in the system.”

Asked if he would reconsider his decision to quit as the RBI chief in September, he said: “I think I can’t answer that question, I don’t want to go into those areas. I don’t think you should ask me that question.”

–IANS

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