RBI chief says has reservations on sovereign bond issue

MUMBAI (Reuters) - The Reserve Bank of India's Governor Duvvuri Subbarao said on Tuesday the central bank has reservations on issuing sovereign bonds.

A sovereign bond issue would compromise financial stability, and the cost of a sovereign bond issue outweighs the benefits at current juncture, Subbarao told reporters at the post-policy conference.

Earlier in the day, the RBI held its key policy rates.

(Reporting by Neha Dasgupta; Editing by Jijo Jacob)