On Twitter, top govt official hits back at Acharya's 'market wrath' speech

In a rare public criticism by a leader of the central bank, RBI Deputy Governor Viral Acharya had on October 26 attacked the government's dealing with the RBI

A top civil servant has made a subtle comeback at Reserve Bank of India (RBI) Deputy Governor Viral Acharya’s warning that governments that interfere with central banks suffer the “wrath of the markets”.
 
“Rupee trading at less than 73 to a dollar, Brent crude below $73 a barrel, markets up by over 4% during the week and bond yields below 7.8%. Wrath of the markets?” said Subhash Chandra Garg, secretary in the finance ministry's department of economic affairs, on Twitter on Friday.


 

Acharya, in a speech on October 26, had criticised the government’s dealing with the RBI — a rare public criticism by a leader of the central bank.

 
"Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution; their wiser counterparts who invest in central bank independence will enjoy lower costs of borrowing, the love of international investors, and longer life spans," Acharya had said.
 
Business Standard reported on Friday that government officials privately termed Acharya's open criticism as "immature".