India's Central Bank On China: 'There Is Underlying Growth'

India's central bank government, Raghuram Rajan, spoke to Bloomberg Television on Thursday.

Speaking from the World Economic Forum in Davos, Switzerland, Rajan discussed China's economy. According to the central banker, China's economy is "not falling off a cliff" and there is still "underlying growth" coming from the country.

Rajan further noted that China's statements that its government isn't deliberately depreciating their currency should be taken at their word.

"The Chinese move to a basket is understandable because the dollar is strengthening, but the yen and the euro are weakening, so clearly some of the actions that have been taken to weaken currencies do have effects elsewhere," Rajan told Bloomberg. "One shouldn't see the Chinese move, to move towards a basket, as being unrelated to what's happened elsewhere."