RBI deputy says financial imbalances need to be tackled

Central banks should tackle financial imbalances even if it means sacrificing some economic growth, the Reserve Bank of India (RBI) deputy governor Anand Sinha said in a speech on Wednesday.

The RBI has recently unveiled a slew of measures including draining cash and raising short-term interest rates, sparking concerns about the impact on economic growth.

Sinha Also said macroprudential regulations and monetary policy should move in the same direction.