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RBI vs govt: IMF says 'operational independence' of central banks important

IMF Director Gerry Rice said this in response to a question on the recent developments at the RBI

Press Trust of India  |  Washington 

International Monetary Fund, IMF
A security personnel stands next to International Monetary Fund logo at IMF headquarters in Washington, US: Photo: Reuters

The (IMF) on Thursday said "operational independence" of central like the (RBI) was important for carrying out their responsibilities.

Director Gerry Rice said this in response to a question on the recent developments at the He, however, added that his views were in the context of international experiences.

"International experience shows that operational independence is important for a central bank to carry out its responsibilities," Rice said in response to a question.

The played a vital role in ensuring economic and financial stability, and was an important counterpart and partner for the IMF, he said.

Rice added that the had "taken note of" as the governor of the and the appointment of Shantikanta Das as his replacement.

"We believe Patel was instrumental in formulating the Reserve Bank of India's inflation-targeting framework as a deputy governor and in successfully implementing it as governor," he said.

"In wishing Governor Patel all the best in the future, we also look forward to working closely with Governor Das and wish him well in his new incarnation," Rice said.

First Published: Fri, December 14 2018. 06:25 IST
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