Reserve Bank of India (central bank) on the 10th announcement that India’s central bank governor Suba Rao, the International Monetary Fund and the Swiss National Bank jointly organized the meeting that the United States in August last year launched the second round of quantitative loose monetary policy to the emerging economies was significantly negative impact.

Suba Rao said the second round of the quantitative easing policy was announced, easing liquidity to the United States is expected to promote capital inflows in emerging economies, the threat of its price and financial stability, which leads to global commodity prices and inflationary pressures increase large.

Present some emerging economies, policy dilemma facing the one hand, inflation requires tighter monetary policy, higher interest rates will exacerbate the other capital inflows, exchange rates and economic stability and thus to bring greater pressure.

Suba Rao said that as India needs capital inflows to cover the current account deficit, this concerns not so serious, but the composition of capital inflows is still a problem.

He called for strengthening of trade between economies, financial and industrial relations research, redefining the well-meaning financial regulation, assessment of the spillover effect, codes of conduct in order to eventually achieve a single national policy spillover effects on the implementation of effective policies response purposes. (Xinhua Liu Yanan)

Related posts

• ￡ exacerbated concerns about slowing economic growth slightly down
• ￡ 200 billion UK QE2 or October debut
• ￡ 0.5% to keep the benchmark interest rate
• 萨科齐默克尔 EU treaty to amend the proposal put
• € 500 billion rescue fund permanent ease the debt crisis is only the life buoy