Former RBI Chief’s Key View on Rupee.. Is Depreciation the Better Option?

Former RBI Governor Duvvuri Subbarao has stated that allowing the Indian rupee to weaken further may be necessary to withstand external economic pressures. According to him, exchange rate adjustments can help the economy adapt to changing global financial conditions and improve resilience against international uncertainties. His remarks have sparked discussions among economists and market observers.

Subbarao also noted that raising interest rates should be considered only as a last resort to control inflation. He emphasized the need for balanced policy measures that can manage price pressures without significantly affecting economic growth, investments, and consumer demand. He stressed that central banks must act cautiously amid evolving global economic challenges.