Moody's suggests that India's central bank should continue with Rajan's policies.
Global Banking News-August 15, 2016--Moody's suggests that India's central bank should continue with Rajan's policies
(C)2016 ENPublishing - http://www.enpublishing.co.uk
Global Banking News - 15 August 2016
Ratings firm, Moody's Investor Service has suggested that the Indian central bank has to continue with the policies of Raghuram Rajan, the bank's governor, who is quitting his position in September.
Moody's said that Rajan's policy of keeping a tight leash on inflation has showed results, and that trend needs to continue. Moody's Investors Service senior VP, Sovereign Risk Group, Marie Diron, said credibility and effectiveness of monetary policy are factors that impact India's sovereign ratings.
The agency has a 'Baa3' rating on India, with a positive outlook.
Diron said, 'In the last two years, India's inflation has fallen to more moderate levels, likely in part because of more credible monetary policy that has anchored inflation expectations. We expect the RBI to continue with similar policies and communication, showing commitment to achieve its inflation target.'
[Editorial queries for this story should be sent to firstname.lastname@example.org]
((Distributed via M2 Communications - http://www.m2.com))