MUMBAI Jan 29 India's central bank has not
raised interest rates to fight off the recent global emerging
market sell-off, but to tamp down inflationary pressures,
Governor Raghuram Rajan said on Wednesday.
"I think for (some) time we have been saying very clearly we
are focused on preserving the value of the rupee, in the
domestic context," he told analysts on a conference call a day
after the central bank unexpectedly raised its key rate by 25
"Preserving it in the domestic context will preserve it in
the international context. Preserving in the domestic context
means bringing inflation under control. Once we do that, we
believe investor confidence naturally follows," he said.
(Reporting by Mumbai Treasury Team; Editing by Supriya Kurane)