The country must thank God and the previous Reserve Bank of India Governor Y V Reddy for safeguarding the banking system in India from the global financial meltdown, Punjab National Bank's chairman and managing-director K C Chakrabarty said on Sunday.
Y V Reddy on Saturday took over as the governor of the Reserve Bank of India.
'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.
'After a long time, we have a governor who is approachable. The RBI's interactions with us are now much better.'
'Das is friendly, but he finally does what he does. The quality of engagement is very good.'
Y V Reddy, outlined certain key milestones in the Indian economy's growth story and envisioned the future trajectory
Y Venugopal Reddy, currently executive director of International Monetary Fund will be the new Governor of Reserve Bank of India, succeeding Bimal Jalan.
Reserve Bank of India governor Y V Reddy defended his decision to keep the rates unchanged by saying that all stakeholders should pay an uncertainty premia during uncertain times.
China's savings rate is above 40 percent, while India's is in the range of 20 to 30 percent.
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.
Inflation tolerance level in India is low relative to many developing countries because of democratic pressures, said the Reserve Bank of India Governor Y V Reddy.
The Rajasthan high court has issued contempt notices to Reserve Bank of India Governor Y V Reddy and three State Bank of India officials for failing to comply with a court order.
Calling the present level of inflation unacceptably high, Reserve Bank of India Governor Y V Reddy on Monday said that the Central bank is ready to take steps to cool prices. "Any decision to act has to carefully assess this extremely complex situation... We have a range of instruments available with us to manage liquidity and we do not hesitate in using them. Liquidity management has to be consistent with monetary policy and with management of aggregate demand," Reddy said.
Reserve Bank of India Governor Y V Reddy on Tuesday admitted that inflation in India's food prices is much higher than the country's 'tolerance limit' necessitating a comprehensive review of the situation. In response to another question on whether from a monetary policy standpoint he was going to be taking actions to try to counter food price inflation, Reddy said in terms of monetary policy actions they will be governed by lot more desegregated analysis of the situation.
Reserve Bank of India Governor Y V Reddy has been awarded an honorary fellowship by the prestigious London School of Economics and Political Science for his contribution to the cause of the under-privileged.
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.
The Reserve Bank of India Governor Y V Reddy has said the higher level of headline inflation may be difficult to avoid in the short term though central banks across the globe are according a top priority to "calm the nerves".
India was, relatively, less affected, as the central bank here did not allow the banks to speculate with people's money on the market.
"The central fiscal situation has improved but several underlying fiscal pressures are not entirely evident in the numbers," Reddy said at an event organised by the National Institute of Public Finance and Policy. In 2008-09, the Centre has budgeted to cut fiscal deficit to 2.5 per cent of GDP from 3.1 per cent in 2007-08.
In fact, observers say ever since RBI moved to quarterly statements in 2005 during YV Reddy's term, the governor's life has become like that of a company chief executive -- both have to grapple with these quarterly statements, adding to the stress of an already hectic life.
The exchange rate policy has served us very well in the last so many years and the exchange rate has been commended all around, says RBI Governor Y V Reddy.
Finance Minister Jaswant Singh will not attend the spring meeting of International Monetary Fund and World Bank, starting in Washington on March 20.
Perhaps because the Modi government had some differences of opinion with two of the economist governors (one of whom was appointed by the Manmohan Singh government), there is a view that its political leadership prefers a civil servant to head the RBI, notes A K Bhattacharya.
A 9-10 per cent economic growth rate for India is not sustainable without creating necessary infrastructure like power, ports and roads, warns former Reserve Bank Governor Y V Reddy.
Tobin tax and a financial sector levy could be considered, says former RBI governor. India should manage its capital account irrespective of high or low inflows, Y V Reddy, former governor of the Reserve Bank of India (RBI), said.
