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Ready to act on any ‘disorderly behaviour’: Rajan on Brexit

Reserve Bank of India Governor Raghuram Rajan speaks to The Econ

New Delhi:Reserve Bank Governor Raghuram Rajan today said the central bank was watching markets closely on the fallout of UK voting for exit from the European Union and was ready to act if there was any disorderly behaviour.

In a statement, Rajan said it looks increasingly clear that the United Kingdom has voted to exit the European Union.

“The RBI is watching all the markets… we are ready to act when there is disorderly conduct, disorderly behaviour (in the markets),” he said.

Markets, he said, are trying to factor the consequences of Brexit, which has already led to sharp corrections in financial markets around the world.

“We are prepared to act if necessary,” he said.

The Indian economy has good fundamentals, low short-term external debt and sizeable foreign reserves, he said, adding these should stand the country in “good stead in the days to come.”

“Reserve Bank is continuously maintaining a close vigil on market developments, both domestically and internationally, and will take all necessary steps, including liquidity support (both dollar and rupee), to ensure orderly conditions in financial markets,” he added.

PTI

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