There may not be enough political will often to do what is necessary even if the solutions are clear, said Reserve Bank of India (RBI) governor Raghuram Rajan, who was addressing students at an educational institute in Mumbai. He decided to “spend sometime” Tuesday talking on what was happening in the global economy. “Economic policies […]
Raghuram Rajan says no point in cutting rates and then see inflation rising.
‘Banks are there to undertake social actions but those must be backed by financial gains’.
Govt must take advantage of the lowest oil prices in a year: Raghuram Rajan.
RBI Governor says there is no point in cutting interest rates to see inflation pick up again.
It plays no role in the rise and fall of inflation. RBI must junk its inflation expectations survey before it causes more damage to its reputation
On price rise, Rajan said that while inflation was off peaks, it remained high due to supply-side rigidities.
The level of bad loans at Indian banks is a “concern” but is not “scary”, says Raghuram Rajan.
There has been apprehension among RBI staff and employees’ unions over restructuring which has prompted Rajan to hold a second meeting.
Rajan, specifically cited policy changes like the quantitative easing by the US.
Rajan was referring to the recent developments involving the arrest of Syndicate Bank chairman.
According to Rajan, one of the greatest dangers to the growth of developing countries is the middle-income trap.
The agreement puts behind a frosty relationship that had emerged between the RBI and the Finance Ministry.
RBI governor’s people skills may be tested when FM Arun Jaitley attends Sunday’s RBI board meet.
Nayak Committee had also recommended several steps like bringing down the government stake.