Panel to recommend sharing of divisible resources between states and the Centre from 2015 to 2020.
"He (RBI governor Duvvuri Subbarao) has explained the position. I think the governor's statement is very balanced, very appropriate as far as I could understand," Reddy said.
For the financial sector to serve the real sector, yesterday's beliefs offer no road map for tomorrow's policy options, says Yaga Venugopal Reddy.
Despite ideological differences, the former RBI governor gives credit to political management by Delhi for protecting India from the full impact of the trans-Atlantic financial crisis.
Reserve Bank Governor Yaga Venugopal Reddy on Tuesday ruled out a crisis similar to the US sub-prime impact in the country, but hinted at more liquidity tightening measures from the regulator. He also said the regulator has seen simultaneous volatility in money, credit and currency markets, asset prices and food items, adding that "RBI is on a major extra-ordinary vigilance," to face these issues.
Former Reserve Bank of India governor Yaga Venugopal Reddy said he would have preferred a tighter monetary policy as managing inflation and inflationary expectations were crucial to keep the economy growing.
Come January 31 and the RBI will announce its credit policy. To help you understand it, Get Ahead cuts through the RBI jargon.
The RBI has announced its credit policy last week and auto financiers believe that consumers should 'wait and watch' before the interest rates on auto loans settle down.
'Interest rates will depend on the respective banks depending upon their deposits. We will get a clearer picture from the banks in the coming days,' says Y V Reddy.
Y V Reddy on Saturday took over as the governor of the Reserve Bank of India.
In a free-wheeling interview with Business Standard, Reddy discusses a range of issues -- from corporate exposure to stock markets to asset bubbles -- in certain sectors.
The government on Monday approved the appointment of B P Mishra as the new executive director of International Monetary Fund.
RBI Governor Y V Reddy said the central message of the credit policy was that we could be continuing with the growth rate or there could be a upward shift in the trajectory.
The friction with the political class is not only about interest rates and monetary policy. While the government often spoke freely about its discomfiture, the RBI had to be careful even in its response to the government as any loose statement would affect the markets.
Reddy has worked to reform the economy.
'Normally, the system is geared towards counting notes -- it is equipped to do x amount of work and one day you are asking them to do 20 x.' 'The processes involved are very complex.'
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