Shimla, May 15
Reserve Bank of India Governor Raghuram G Rajan today said that a contingency plan had been put in place to ensure liquidity flow in case of any untoward fallout on the market after the poll results tomorrow.

“In the last few days, the markets have been very buoyant based on the assessment of the election results and we will get to see tomorrow whether these expectations will be justified or belied,” said Rajan. He said discussions were held with the Finance Ministry and the stock market regulator to deal with any excessive volatility in markets after the election results.

“The RBI does not have any political leanings. We are only watching the poll outcome and will work with the next government the way we did with the previous one,” he said.

The RBI Governor said he was hopeful that inflation would be down to eight per cent by year-end and six per cent by the end of next year. "We will do whatever we can on the inflationary front... Our best tool to control inflation is interest rate and the government also has tools like raising agri production and supply,” Rajan said.