Printer Friendly

Govt upset with RBI.

NEW DELHI: Indian government officials are very upset with the Reserve Bank of India (RBI) for publicly talking about a rift with the government.

They feared it could tarnish the country`s image among investors, senior officials said. On Friday night, the RBI Deputy Governor Viral Acharya warned that undermining a central bank`s independence could be "potentially catastrophic", in an indication that it is pushing back hard against government pressure to relax its policies and reduce its powers.

In a speech to top industrialists Acharya cited the Argentine government`s meddling in its central bank`s affairs in 2010 as an example of what can go wrong. That led to a surge in bond yields that badly hurt the South American economy. "Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution," Acharya said.

COPYRIGHT 2018 Plus Media Solutions
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Nov 4, 2018
Words:158
Previous Article:Petrol price cut by 20 paise.
Next Article:Modi asks MSMEs to explore opportunities in India.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |