Is It The End Of Honeymoon Period Between Government And RBI?
Image credit – Indian Express
It seems not all is well between government and India governor Urjit Patel within the year of his appointment. Just like every Indian politician, he promised to aid the growth of the economy and financial status with various steps like lowering rates and other revival policies but failed to oblige through it.
Patel held the rates beyond a 25 basis point reduction of which he soon took charge last September. Unlike previous one Patel was not solely responsible for deciding the interest rates, its pure baggage is held by the monetary policy committee run by RBI governor. It has two other RBI representatives and three government nominees. Nevertheless, a strong section working under RBI believes it to be unsympathetic and ignorant towards the serious issue of rising interest rates and stubborn enough to take advantage of the stable fiscal situation and inflation which ranges comfortably from 2 to 6 %.
The government has not fully shown its disappointment towards the functioning of MPC including its three nominees. A mail sent to RBI hunting its response was left unanswered till date.