Our exchange rate policy is not guided by a target or a band. Our policy has been to intervene in the market only to manage excessive volatility and prevent disruptions to the macroeconomic situation. QE2’s impact on India beyondbrics reader: How will the new US round of quantitative easing (QE2) affect India?
Would you welcome it as a good source of cheap money to finance the infrastructure investments that India badly needs? DS: India needs to raise its investment by a quantum step if it has to realize its aspiration of a double digit growth. We certainly need to augment our domestic resources with foreign savings.