India should retain curbs on gold imports at least until March to stabilize the current-account deficit that weakened the rupee to a record low last year, Economic Affairs Secretary Arvind Mayaram said.
India’s persistently high inflation may prevent an imminent reversal of record interest-rate increases, as a weakening rupee and oil’s rebound reduce the scope for monetary easing, the central bank’s deputy chief said.
Indian central bank chief Raghuram Rajan’s surprise move to raise the policy interest rate adds pressure on Prime Minister Manmohan Singh to take politically challenging steps to boost economic growth as elections near.
India’s rupee jumped after the new central bank governor took steps to boost dollar supply and lawmakers moved closer to allowing foreign investment in pension funds. Stocks surged, while government bonds fell.