Re depreciation due to global uncertainties: Reddy

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Shillong, May 8: India's trade deficit may marginally deteriorate, along with the current account, as a fallout of global uncertainties, Reserve Bank of India Governor Dr Y V Reddy said today.

''The rupee is reflecting the uncertainties that have been indicated and analysed in the policy statement,'' Dr Reddy told reporters here. The RBI Governor, who arrived here this morning, reviewed India's key economic, monetary and financial developments with the Central Board of Directors of the Reserve Bank of India.

The Board meets at least once in every four months. Apart from holding the meeting in Mumbai, Chennai, Kolkata and New Delhi, the rest of the meeting takes place in other state capitals by rotation.

RBI's Board of Governors meet was held here today after a span of 19 years at Shillong.

Asked on the depreciation in the value of rupee, Dr Reddy said, the RBI has dealt with the global and India's economy and indicated the uncertainties, which included trade accounts as well as capital accounts.

''We have seen a reflection of these uncertainties in our policy statement and reviewed the overall situation in the meeting,'' the RBI Governor said.

Reiterating that the current trade account is likely to marginally deteriorate from the current consensus assessment, Dr Reddy said these uncertainties could be comfortably made up through capital inflows.

Meanwhile, Dr Reddy called on Meghalaya Chief Minister Donkupar Roy and Finance Minister Conrad K Sangma and discussed issues pertaining to credit for SMEs, small-scale projects, the agriculture sector and self-help groups in the state.


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