 "Domestic factors to dictate rates: Rajan")
The Reserve Bank of India's interest rate moves will be guided more by domestic factors than external ones, Governor Raghuram Rajan told analyts in a conference call on Wednesday, a day after he left rates unchanged, as widely expected.
Rajan said that the RBI is not looking to scrap foreign investment limits in government bonds, adding it would be "premature" to do that before the global unwinding of stimulus measures and the start of a rate hike cycle.
The inclusion of government bonds into global indices is still in at a discussion stage, he added, and reiterated the need to open the limits at a "measured pace".
Separately, RBI Deputy Governor H R Khan said the central bank is in talks with the government to auction cash balances to improve liquidity management.
Khan also said the RBI is talking to the government about providing real-time information on their cash balances.
The RBI kept its key policy repo rate unchanged on Tuesday, and voiced a commitment to bringing down inflation that convinced many analysts that markets will have to wait until next year for the next cut in rates.