With the central bank keeping its short-term lending rate unchanged citing inflationary risks, Financial Services Secretary G S Sandhu on Tuesday said the Reserve Bank of India (RBI) understands the needs of markets and would cut interest rate at the right time.
"RBI fully understands the issue, it fully understands needs and expectation of markets, so they will take a view (on cutting policy rates) when the time is right," Sandhu said at an event when asked to comment on RBI's continued status quo on policy rates.
RBI Governor Raghuram Rajan on Tuesday left all key rates unchanged citing continued risks to inflation and difficult external situation especially on the geopolitical front.
