Credit Policy: Reddyspeak - Video

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Y V Reddy, Governor, Reserve Bank of India (RBI), started the post-policy press meet today with a pithy observation - "The policy is long on language and short on measures."

He went on to say that "today's problem is one of plenty, not scarcity. The last four years have been excellent - both domestically and globally, and the challenge is to meet expectations and keep up the good performance.."

Talking about the forex market, Reddy said the banking sector is stronger now  in terms of efficiency and resilience. "Exchange rate has shown two-way movement, and the system, as a whole, has been able to absorb flexibility and respond to it."

Reddy said there are inflationary pressures in the system, and the interest rates are hardening globally. "India, however, is not not contributing to global imbalances," Reddy said.