The Reserve Bank of India (RBI) Governor Duvvuri Subbarao informed that the central bank would consider macro economic factors and "more importantly" the current account deficit before taking monetary policy stance.
He attributed the depreciation of the Indian rupee to high current account deficit. The said deficit rose to a record high 6.7 percent of GDP in the December quarter, driven by heavy oil and gold imports and muted exports, in a worse-than-expected performance.