Tuesday, December 13, 2011

RBI can, should and will intervene. But they do not have unlimited ammunition

....... RBI can, should and will intervene. But they do not have unlimited ammunition. At the best case, may be USD 20 bln. But we believe that policy makers should always communicate their willingness to use any potential tool available to them and should not vocally rule out any option. Even a verbal message can sometimes be enough to ward of speculators............

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