Former RBI governor Raghuram Rajan on Monday said the central bank will have to raise interest rates to tame inflation and the hikes need not be considered by politicians and bureaucrats as some "anti-national" activity. Known for his frank views, Rajan also said it was important to remember that the "war against inflation" is never over. "Inflation is up in India. At some point, the RBI will have to raise rates, like the rest of the world is doing," he said in a LinkedIn post.
Rajan will evolve a policy with the help of professional persons for a national consensus if we have to carry on with implementing social and economic changes in a complex economy.
The industrial output for the third month in a row remained in the negative territory, contracting 1.5% in January
'India's biggest loss is that we will not have anyone as principled and as courageous as Rajan.'
'We have 100,000 students going abroad every year.' 'So, we have room for at least 100 universities of very high quality to service those 100,000 students.'
'The 'Off-with-Rajan's-head' brigade bases its arguments on mistaken beliefs, erroneous causalities, and even downright prejudice.'
Sounding a note of caution, former Reserve Bank Governor Raghuram Rajan has said that India is "dangerously close" to the Hindu rate of growth in view of subdued private sector investment, high interest rates and slowing global growth. Rajan said that sequential slowdown in the quarterly growth, as revealed by the latest estimate of national income released by the National Statistical Office (NSO) last month, was worrying. Hindu rate of growth is a term describing low Indian economic growth rates from the 1950s to the 1980s, which averaged around 4 per cent.
Rajan's appointment will be perceived as a positive development.
He endorsed transparency and financial stability in addition to issues related to inclusive growth and development, write Puran Singh and Nupur Pavan Bang.
Raghuram Rajan's 'surgery' uncovers more bad loans
It would be beneficial for the economy to hold on to high interest rates till inflation numbers are under control.
Even before Prime Minister Narendra Modi swept to power in 2014, Subramanian Swamy was agitating for Rajan's removal.
Jaitley has made it a habit of giving soundbytes to the media like his predecessors on why RBI should cut interest rates
Gopalakrishna's name was in the reckoning for Deputy Governor in place of Anand Sinha who retired in January.
Indian economy grew at 7.9 per cent in fourth quarter of 2015-16.
If Mr Rajan's citizenship is considered relevant for heading an organisation that issues sovereign currency, should the provenance of a participant in a critical function of a sovereign democracy not count as well?
...but when they awaken, it's going to be overly optimistic to assume everybody will walk off the sleeping bed and come back to full life, Rajan noted.
Reserve Bank of India (RBI) Governor Raghuram Rajan spoke on a host of issues at his last post-policy interaction with the media
Rajan said that while there were talks about Jan Dhan, it was difficult to target transfers to people through this tool. Jan Dhan, he said, does not really work as advertised.
RBI governor Raghuram Rajan has slashed rated by 50 bps.
Because of Rajan's policies, the banking system has mustered enough courage to disclose their toxic assets
Former Reserve Bank of India (RBI) Governor Raghuram Rajan says the government should take advantage of the peaks in the Indian equity markets right now and sell stakes in PSUs while prioritising spending to get the economy back on track. The upcoming Budget for the fiscal year beginning April 1 should look to provide "relief to the poorer households and small and medium enterprises," he said. And then move on to getting the economy back on track.
We need a change in mindset, says the RBI Governor.
Rajan has set March 2017 as the deadline for banks to clean up their balance sheets.
'We are by no means anywhere nearing having external financing difficulties or internal financing difficulties. The government's credit is solid, there is absolutely no difficulty for the government in borrowing and it is borrowing effectively from the public today in a fairly free public debt market,' the RBI governor tells a meeting in Washington, DC
Says impact of crisis in China won't be as big here as in some other countries
Rajan, who has also served as chief economist at the International Monetary Fund (IMF), said he had no idea what statistics are pointing at currently and "a revamp" was needed "to really figure out what India's true growth rate is".
Regardless of who is right, Rajan has to quickly come to grips with a number of obvious challenges, ranging from the immediate to the medium term.
A day after the Reserve Bank of India's monetary policy review, the RBI Governor talked to journalists on related issues.
Fraudulent emails exhorting people to deposit cash for reward are on the rise.
Reserve Bank is scheduled to announce its bi-monthly monetary policy on August 3.
Raghuram Rajan said on Friday it is not clear India needs a so-called "bad bank.
The comments assume importance as the traditional position of the central bank has been not to set a forex reserves target.
The new hire, Gangadhar Darbha, joined as a consultant
Raghuram Rajan, Governor of the Reserve Bank of India, has scoffed at the contention that BJP's Prime Ministerial nominee, Gujarat Chief Minister Narendra Modi will be the knight in shining armour who will root out corruption in India.
The RBI's bi-monthly policy review on June 3 will be the first after Prime Minister Narendra Modi assumed office on May 26.
The report also described the RBI as an "extremely visionary, pragmatic and fairly independent" organisation throughout its history
'The RBI risks becoming dangerously weakened, as successive governments and finance ministers have misunderstood its role'.
The RBI Governor also reiterated his reservation against repeated loan waivers by various state governments, saying the move distorts credit pricing, thereby also disrupting the credit market.
'Government of India has the right to give directions to RBI'.
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