Raghuram Rajan says current account deficit will be checked at $56 billion

Reserve Bank of India (RBI) Governor Raghuram Rajan today held a press conference and said that current account deficit for the current fiscal will be checked at $56 billion, which is much lesser than last year's $88 billion.

Here are the highlights from the conference:

• There has been some turmoil in financial markets all over the world over Fed tapering concerns
• Current account deficit this year will be $56 billion
• Not worried over funding current account deficit
• Majority of  oil marketing companies' dollar demand back in market
• Major debt outflows haven't returned
• More FII debt outflow is not a concern
• Factory output data has disappointed
• Food inflation still worryingly high
• Next Monday an OMO or open market operations of Rs 8,000 crore
• Seeing some tightness in liquidity
• To maintain adequate liquidity
• Concerned about weak economy
• RBI concerned over inflation as well as growth
• Expect stronger growth in second half of FY14
• There is no fundamental reason for volatility in the rupee
• Not ruling out US taper effect
• No timeline on bond index inclusion