Let me explain the assessment underlying this decision and the outlook for the economy and risks to price stability. Starting with the economic analysis, according to Eurostat’s first estimate, the quarter-on-quarter growth rate of real GDP in the euro area for the fourth quarter of 2006 was 0.9%, which was above previous expectations.
FDI for example and finally we must within the RBI encourage, if not pressurize our corporates to hedge their foreign exchange exposures. They don’t do that adequately. They do cost benefit calculations, if the rupee is not moving rapidly, they calculate the cost of hedging is higher than the risk they take by not taking.