Today : Thursday - Sep 18, 2014, 07:07am (GMT+5.5)
All News  
Top News
National News
International News
Business News
Sports News
   » Cricket
   » Football
Entertainment News
Sci - Tech
Politics News
Health & Fitness
Gulf News
::| Latest News
News in Pictures

Reliance Communications has made full repayment of two loans amounting to $1 billion (around Rs 6,000 crore), during the quarter ended June 30.The repayments have been from the company's rupee resources.

Business News

RBI chief stresses independence in monetary policy

Friday - Jan 04, 2013, 11:53am (GMT+5.5)
[+] Text [-]

Mumbai - Central banks need to be given full independence in formulating monetary policy and there should not be any political pressure on them, Reserve Bank of India (RBI) Governor Duvvuri Subbarao said Thursday.

“The issue of monetary policy independence has acquired greater potency following the expansion of the mandates of central banks and their more explicit pursuit of real sector targets such as growth and unemployment,” Subbarao said.

Subbarao's remark was significant as it came against the backdrop of increasing pressure on the RBI from a section of the government and the business community to cut interest rates to boost growth.

The RBI has been maintaining tight monetary policy for the last couple of years due to inflationary pressure even though this has resulted in slowing down the economic growth.

Speaking at the C.D. Deshmukh Memorial Lecture event here, Subbarao referred to the political pressure in Japan in formulation of monetary policy.

“In recent weeks, we have all seen this issue of central bank independence play out in Japan with political pressures on the Bank of Japan to adopt a higher inflation target so as to create more room for growth stimulus. The example of Japan is recent and high profile, but by no means an exception,” he said.

Renowned economist and Nobel laureate Joseph E. Stiglitz delivered the lecture organised in memory of C.D. Deshmukh, the first Indian governor of the RBI.

However, Subbarao said the central bank cannot fix the economic problems alone.

“Central banks cannot fix economies by themselves. Governments need to act too from the fiscal side, and monetary and fiscal policies have to act in harmony,” he said.

“On top of this, governance needs to improve to inspire the trust and confidence of consumers and investors,” the RBI governor added.


Rating (Votes: )   

blog comments powered by Disqus

Other Articles:
Oil ministry allows diversion of gas for power plants (4th Jan, 2013)
Tata Power Mundra UMPP stops supply to Rajasthan discoms (4th Jan, 2013)
Third edition of Nyuzmakers cricket challenge from Monday (4th Jan, 2013)
SC frowns on unethical drug trials (3rd Jan, 2013)
Allianz to open art facility at IT park (3rd Jan, 2013)
FDI hopes raise Jet Airway scrip (3rd Jan, 2013)
Halt eviction of Delhi slum dwellers: Maken (3rd Jan, 2013)
Sensex closes flat, oil and gas stocks rally (3rd Jan, 2013)
Bumper crop of oranges delights Tripura farmers (3rd Jan, 2013)
Al-Jazeera buys Al Gore's Current TV (3rd Jan, 2013)
Bloomberg lists Mukesh Ambani as India's richest for sixth consecutive year (3rd Jan, 2013)
US authorities 'racing' to settle probe into Google's 'dominance in search results' (3rd Jan, 2013)
Nestle wins trademark battle against Cadbury over kitkat bar's shape (3rd Jan, 2013)
Gold prices roses by Rs 135 to Rs 31,400 per 10 gm (3rd Jan, 2013)
Former RBI governor Y.V. Reddy to head 14th Finance Commission (2nd Jan, 2013)
Rangarajan panel wants oil-gas accords linked to output (2nd Jan, 2013)
Kerala becomes first state to go over to m-governance (2nd Jan, 2013)
Google blames 'algorithm' for directing users to Apple stock page when they typed 'sell' (2nd Jan, 2013)
US ‘fiscal cliff’ crisis averted after House passes bill with 257-167 vote (2nd Jan, 2013)
Fiscal cliff deal in danger of unraveling amid House GOP opposition (2nd Jan, 2013)
China to produce more cars than Europe in 2013: Report (2nd Jan, 2013)
LG Electronics unveils world's first 55-inch TV (2nd Jan, 2013)
US Congress okays deal to avoid fiscal cliff (2nd Jan, 2013)
Nepal tourist numbers up (2nd Jan, 2013)
Dhaka reels under high population growth (2nd Jan, 2013)

Contact Us | Advertise with Us | Privacy Policy | Disclaimer | Terms of Use