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The RBI remains vigilant about the widening current account deficit (CAD) but is not apprehensive of it, the Governor, Raghuram Rajan said here on Thursday.
"There are risks to current account. We are vigilant but not apprehensive on current account (deficit)," he said during a press conference.
As per latest reports, the current account deficit has widened to 2.1 per cent of the GDP.
"CAD has widened... we will be watching the direction... We will wait and watch," he said adding it is "hard to maintain restrictions for too long a period".
According to Rajan, at the time of falling oil prices, it was a good time to see what happens.
"It gives us some cushion," he said.
As the pressure of inflations weans, people will start depositing in stocks and fixed income securities instead of gold as investments. Jewellery is not a main concern.
The RBI governor was in the city to attend a board meeting.
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