Mumbai

WHILE June's inflation surprise kept Indian central bank governor from cutting interest rates on Tuesday, he sought to push ahead with reforms including freeing up the bond market, targeting price gains and issuing new bank licences.

Sovereign bonds need to have an open, and not a captive market, and the Reserve Bank of India is talking to the government about limits on foreign portfolio investments in debt securities, governor Raghuram Rajan said on Tuesday, spurring the biggest rally in the rupee since June.