RBI needs more independence before it adopts monetary policy committee: Subbarao

By Religare
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    RBI governor D Subbarao, who has stayed under pressure from finance minister to cut policy rates, has now said that the central bank needs more independence before it adopts a monetary policy committee structure.

    Unlike other major central banks where a committee is formed to take up the monetary policy review, RBI governor himself takes the decision.

    "India also needs to move towards a monetary policy committee structure," Subbarao said and added that "For that to happen there are some necessary conditions to be fulfilled and one of the necessary conditions must be more independence of central bank."

     

    Raghuram Rajan, the Chief Economic Advisor in finance ministry, also favours moving towards a more powerful monetary policy committee.

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