For Quick Alerts
For Daily Alerts

We Love Conspiracy Theories: FM On Rift With RBI

By Super

Finance Minister Arun Jaitley denied any rift with the Reserve Bank today and attributed the reports about his officials not being on the same page with their Mint Road counterparts as a result of "our national love for conspiracy theories". Stating that he has "a good professional relation" with Reserve Bank Governor Raghuram Rajan, Jaitley said, "I think India by and large loves conspiracy theories."

We Love Conspiracy Theories: FM On Rift With RBI
"I think whether it is North Block or whether it is the Mint Street, these are responsible institutions. There are a lot of people who are level-headed and who work with a sense of propriety because their priorities are clear," the Minister told Shekhar Gupta, former editor of the Indian Express, and TV journalist Barkha Dutt who have launched a media start-up ThePrint, here late this evening.

Jaitley, however, parried a question on whether Rajan will get a second stint at RBI after he completes the term on September 3, saying "it is not proper to comment on it". In the run-up to the setting up the monetary policy committee (MPC) and the budget, there have been many reports that the North Block wanted to clip the Governor's wings by taking away his veto power on rate setting. But when the composition of the MPC was finalized, everything was settled with the six-member MPC having equal representation from the government and RBI and the Governor retaining the veto.

To a question whether it is the right time for rate cut by the RBI, Jaitley avoided direct answer but pointed to favourable factors like under-control inflation and the last week's move to align small savings rates to overall interest rates. "The RBI is an experienced institution. After all, the RBI has no particular interest in keeping rates high. The RBI would also love to bring them down, provided they are sufficiently cushioned on the fact that inflation is low. The other steps are taken by the government," he said.


Read more about: rbi arun jaitley
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more