.........The government has done a great deal to assuage the RBI’s legitimate fear of a huge fiscal deficit, and should commit itself to doing even more in the coming months. But the RBI must take its assurances on trust, for it can make the next cuts only after industry and employment begin to grow and spending power starts to rise once more. Dr. Manmohan Singh needs to make this clear to the RBI Governor and remind him forcefully, as he reminded his predecessor Y.V Reddy when the latter was reluctant to bring down interest rates even after the onset of global recession in August 2008, that when push comes to shove it is the RBI Governor who holds his post at the government’s pleasure and not the other way round.
Read - The Hindu
1 comment:
otepacExcellent concluding words for an excellently argued article to salvage the prestige of a government which is struggling with its numbers in parliament, rather than problems staring at industry and the common man. Let us read again: “……….that when push comes to shove it is the RBI governor who holds his post at the government’s pleasure and not the other way round.” This will definitely shake up Dr Subbarao who may run to Delhi to apologise for whatever he has done since he took over as RBI Governor and will definitely take a dictation of what he should announce on October 30, if Delhi doesn’t ask him to make the announcement earlier!.
Post a Comment