RBI chief reiterates call for global monetary coordination

Says central banks of advanced economies should consider effects in other financial markets

Reserve Bank of India chief Raghuram Rajan reiterated on Wednesday what he said is the need for global central banks to be mindful of the impact of their unconventional monetary policy measures on other economies.

Rajan proposed that central banks of advanced nations "internalise" the spillover effects from such policies to minimise volatility and disruptions in financial markets elsewhere.

"The current non-system in international monetary policy is, in my view, a source of substantial risk, both to sustainable growth as well as to the financial sector," Rajan said in the text of a speech to be delivered at the Bank of Japan in Tokyo.

"It is not an industrial country problem, nor an emerging market problem, it is a problem of collective action. The sooner we recognize that, the more sustainable world growth we will have," he said, reiterating comments he made earlier this month.