It's a challenging environment but we will overcome it: Rajan

Rajan is to take over as the RBI governor on September 5

Chief Economic Advisor and governor in waiting Raghuram Rajan today said the economy is passing through a challenging time but expressed confidence that the country will overcome it.

"It's a challenging environment and I look forward to work with everyone in RBI .. We will overcome the challenge," Rajan said outside the Reserve Bank of India headquarters where he attended the central bank's board meeting today.

Earlier this week, the government announced that Rajan will succeed D Subbarao as the governor of RBI on Sep 5. Subbarao's 5 year term ends on Sep 4.

The economy is passing through a difficult phase with growth hitting decade low last fiscal. The record high current account deficit of FY13 has made the rupee weaken rapidly against the dollar.

The central bank has taken several steps to tightening liquidity in the banking system so as to curb speculation in the currency market but the steps have failed to yield desired results as the rupee has hit record low despite the measures.