Gokarn probably became the fall guy for resisting calls for interest rate cuts by the government and industry lobby groups, despite uncomfortably high inflation and/or for depreciation of rupee.
Rajan was expected to join the search committee to appoint three external members of a new six-member RBI Monetary Policy Committee
Observing that India has a low foodgrain productivity and inefficient distribution, he said increasing the scale of investments in organised retail is one way to increase productivity and distribution efficiency.
The downgrade threat comes in the backdrop of growth slowing to a nine-year low of 5.3% in the fourth quarter of 2011-12, high inflation
The RBI is expected to respond to some bankers' demand for abolition of cash reserve ratio, the amount of money which banks are required to keep with the central bank in cash.
Ahead of its mid-quarterly policy review, the Reserve Bank today hinted at cut in interest rates, saying moderation in inflation due to lower economic growth and cooling global oil prices provide room for easing monetary policy.
CRR cut does not rule out open market operations.
The Finance Minister himself admitted that the tax proposal could have some inflationary bearing.
Country's central bank has been vocal on the build-up of the fiscal deficit.
Following the 11.4 per cent decline in the dollar value of the rupee over barely a quarter, the sharp slump of last week has further complicated an already tricky situation for the Reserve Bank of India (RBI).
To a question on the latest Index of Industrial Production Data, RBI Deputy Governor said concerns had been raised about IIPD for sometime now.
'While bank non-performing assets will rise, there is no systemic risk.'
Modi will also need to reconcile market demands with those from forces within his own administration
The upheaval in domestic markets that followed the US economic downgrade notwithstanding, RBI on Friday said the liquidity in the Indian banking system was not under stress and the central bank was monitoring the situation closely.
The Indian Rupee is the fourth most depreciated currency in the world and most depreciated in Asian continent.
Rising oil prices and firming up of global and domestic food prices are likely to have a significant impact on inflation outlook in 2011, a top RBI official said.
Economists and experts have suggested that the central bank should intervene in the Indian forex market to halt the sharp depreciation in rupee value.
The Reserve Bank of India (RBI) may consider measures to deal with foreign institutional investor (FII) inflows, which are emerging as a potential threat, said the central bank's Deputy Governor, Subir Gokarn, in Mumbai on Tuesday. His comments came a day after Finance Minister Pranab Mukherjee said there was no need for restrictions on foreign inflows, in an interview with a television channel.
The Reserve Bank of India on Wednesday said it has reasonable tools to tame inflationary expectations, which along with short supply of food items, is fuelling price rise.
Select bankers will meet RBI Deputy Governor Subir Gokarn, who is in-charge of the monetary policy department, and other central bank officials on July 12.
The country's top bankers met RBI deputy governor Subir Gokarn on Thursday for the customary pre-policy meeting, where bankers pitched for a cut in savings bank rate, which will help them improve their net interest margins.
Containing high food prices is a dominant policy concern, the Reserve Bank said on Tuesday, amid expectations that it may raise short-term borrowing and lending rates next month.
He based his optimism on hedging tools available.
Though the index of industrial production expanded 11.7 per cent in November, the Reserve Bank of India sees the recovery still skewed and says the uneven recovery would dominate the central bank's thinking.
Along with Subir Gokarn's appointment as the fourth deputy governor, the Reserve Bank of India on Wednesday reshuffled some of the key portfolios of its deputy governors and executive directors.
The Reserve Bank of India on Thursday said the Greek debt crisis would not change its roadmap to exit from the accommodative stance, as the central bank has already factored in the impact of global uncertainties in its exit-policy.
"We did not abuse RBI governors," says Chidambaram.
The Reserve Bank on India on Thursday said that high inflation, primarily driven by food prices, has begun to spread to the broader economy now, but it is likely to ease in the coming months on the back of an expected moderation in food prices with the arrival of fresh crops.
Most of the Asia-Pacific economies would be cushioned by healthy foreign exchange reserves in the last quarter of the current calendar year, global ratings agency, Standard & Poor, said in a report.
The reversal of easy monetary policy would be a gradual process as the central bank is focusing on striking a balance between growth and inflation, Reserve Bank of India Deputy Governor said.
RBI depty governor Subir Gokarn stopped short of giving a new estimate, saying the recovery was mainly driven by government spending and it was premature to forecast without knowing the impact of the monsoon on the third quarter figures.
The collapse of Lehman Brothers was clearly a point of inflection, in which the rate of decline of the financial system accelerated sharply and its impact on the global economy intensified. In retrospect, it could have been any one or more of the global financial institutions to precipitate the collapse.
Kaushik Basu, whose stint at the World Bank ends on July 31, was being looked at as a serious contender, the sources said
The 24 July 2007 'Education UK pre-departure briefing' was held at the Hilton Towers, Mumbai. Over 200 parents and students showed up to learn about life on-campus at UK universities.
The government's decision to put on hold even limited cuts in ration shop entitlements spells trouble for any future attempts to target subsidies.
Duvvuri Subbarao recounts how his tensions with P Chidambaram and Pranab Mukherjee, then finance ministers, over monetary policy spilled over into other issues in the central bank in this excerpt from Who Moved My Interest Rate?, his memoir of his term as Reserve Bank of India governor.
The roads in India is a powerful stimulant to rural employment. It will have a strong multiplier effect on the local economy, says Subir Gokarn.
Rating agency Crisil on Friday said growth rates witnessed in the current fiscal in several sectors are expected to continue for 3-5 years, even as it predicted rising wages in the information technology sector by 2007-08.
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