Federation of Indian Chambers of Commerce and Industry
INDUSTRY/Banking /Finance RBI in Talks with FinMin to launch inflation-indexed bonds: Deputy Governor HR Khan Mumbai : The Reserve Bank is in talks with the Finance Ministry for launching inflation-indexed bonds, which can help reduce physical demand for gold, Deputy Governor H R Khan said here today. The move can also help balance trade imbalances as gold import has been jacking up trade deficit which in turn increases current account deficit. "We are talking to the Finance Ministry to launch inflation-linked bonds, which can help reduce the demand for physical gold," Khan told the Ficci-organised Asian Financial Cooperation Conference here. The move can also help arrest imported inflation in the light of the steep fall in the rupee. Typically, according to experts, a 10 percent fall in the rupee leads to a 100 basis points or 1 percentage point spike in inflation. The rupee has lost nearly 7 percent this fiscal after losing nearly 18 percent in th...