RBI alone should not set interest rates

Description

The argument for central bank autonomy gathered steam only in the mid-90s. Post-2008, it has lost relevance Reserve Bank Governor Raghuram Rajan surprised markets again by raising interest rates. The surprise is heightened by the RBI's earlier observation that it would closely monitor economic development and inflation trends. This is in sharp contrast to policy announcements in advanced countries where forward guidance is offered on a medium to long term basis. How then did RBI make such a move?. Read more at: https://www.thehindubusinessline.com/opinion/rbi-alone-should-not-set-interest-rates/article22996002.ece

Publication Date

28-1-2014

Publication Title

The Hindu Business Line

Publisher

THG Publishing Pvt. Ltd.

Keywords

Financial management, Financial system, Banking, RBI, Interest rates

Source Link URL

https://www.thehindubusinessline.com/opinion/rbi-alone-should-not-set-interest-rates/article22996002.ece

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