Indian government officials are very upset with the central bank for publicly talking about a rift with the government, fearing it could tarnish the country's image among investors, senior officials said on Monday. On Friday night, Reserve Bank of India (RBI) Deputy Governor Viral Acharya warned that undermining a central bank's independence could be "potentially catastrophic", in an indication that it is pushing back hard against government pressure to relax its policies and reduce its powers. In a speech to top industrialists Acharya cited the Argentine ...
RBI rift: Govt unhappy with Reserve Bank for making differences public
Governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, Acharya said