Miffed Chidambaram widens rift with RBI

.....While the RBI, headquartered in the financial capital of Mumbai, is not statutorily independent, it has tended to enjoy a high degree of autonomy, and Subbarao has resisted pressure in the past from New Delhi to ease policy. But this is probably the first time the government has made its displeasure so vocal. Whatever happens from now on, whether New Delhi needs to do more to convince its central bank, or whether Subbarao cuts rates during his next review meeting, it will be interesting to watch how the relations between two major policy making centres, which seem pretty cold at present, will pan out from here.........

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