Welcoming the Union Budget, the Reserve Bank of India on Thursday said the measures announced by Finance Minister P Chidambaram will send a "strong" message of fiscal consolidation in the country and will be good for the capital market but ruled out any change in its interest rate and inflation stance.
"The Budget underlines the government's strong commitment to the Fiscal Responsibility and Budget Management Act which the finance minister had notified recently, RBI Deputy Governor Rakesh Mohan told reporters in Chennai after the Budget.
"This gives clear indication that he would adhere to the target of bringing down the revenue deficit to zero in five years," Mohan said.
The Budget gives a strong message of fiscal consolidation and will be good for the financial markets, he said.
The Budget also has a strong investment message for agriculture and industries, he said, adding it expresses strong commitment to increase investment in the agriculture sector which has remained low during the last 10-12 years.
Asked whether there will be any change in RBI policy on interest rate, forex and inflation, Mohan said: "Finance Minister's speech expresses confidence in our policy. There will be no change in our interest and forex policies."
