Reserve Bank of India governor over the wires 20 June 2016
- India can't abandon inflation to focus on growth
- can't have it both ways, wanting lower inflation and lower rates
The RBI governor very much on the front foot in the wake of his surprise announcement at the weekend not to serve a second term from September.
- rewards of planned new monetary policy committee will be many including stable ccy, meeting inflation goals
- given that inflation is set by govt, both the govt and RBI have a role to play
- inflation-focussed framework means better coordination between govt and RNI as they go toward common goal of macro stability
Earlier today US rating agency Fitch gave their view on Rajan's depature .
In Asia trading the rupee made losses on digestion of the week-end news and the uncertainty it brings.
Rajan - On the front foot as he heads out the door