Modi Camp Critiques Rajan While Moving to Calm India Investors
- High interest rates hurt domestic industry: Indian official
- Central bank equity could help public-sector banks: document
Raghuram Rajan Plans to Return to Academia
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The Modi administration critiqued outgoing Reserve Bank of India Governor Raghuram Rajan’s record and moved to reassure foreign investors two days after he unexpectedly withdrew from being considered for a second term.
While high interest rates appealed to foreigners, they hurt domestic Indian industry, a senior government official told reporters in New Delhi, asking not to be named citing rules for speaking with the media. The government also suggested that the Reserve Bank’s own capital could be used to bolster state-owned banks as they grapple with non-performing loans, according to a document obtained by Bloomberg on Monday.