In the event of new adversities emanating in the domestic and global economy at any point of time, RBI is in readiness to respond swiftly and appropriately. It is noteworthy that the domestic financial markets have not been seriously affected by the financial turbulence overseas, except for some increased volatility in the equity market, which is relatively more open.
The available indications point to continued stability in the Government securities market; the forex market in view of a continued strong and sustainable external sector; and the money market, duly supported by focus on liquidity management.