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Ready to deal with market volatility on poll result day: RBI

May 15, 2014 05:20 PM IST Politics Politics

New Delhi: Reserve Bank of India Governor Raghuram Rajan on Thursday discussed a contingency plan with the Finance Ministry and stock market regulator Securities and Exchanges Board of India (SEBI) to deal with market volatility on Friday as the Lok Sabha elections will be declared on May 16.

Rajan said that the central bank will be ready to infuse liquidity to minimise any volatility in the markets and on the rupee front.

Rajan also said that there are four big challenges before new government - growth, fiscal deficit, CAD and inflation.

He added that the RBI will do whatever possible to ease retail inflation to 6 per cent by "end of next year". "We are wary about excessive rupee volatility, will do everything to check it," Rajan said.