Economics
Gloves Off in Spat Between India's Central Bank and Government
- Record low inflation seen opening room for India to cut rates
- Forecast errors overstated inflation, economic adviser says
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Nine months after setting up an independent committee to oversee monetary policy, Prime Minister Narendra Modi’s government is expressing frustration that the Reserve Bank of India chose not to cut interest rates or accept meetings to discuss the economy.
Economic conditions warranted a substantial monetary easing, chief economic adviser Arvind Subramanian said hours after the central bank kept its benchmark repurchase rate unchanged at 6.25 percent. RBI governor Urjit Patel told a media conference that all MPC members had declined requests from the finance ministry to meet ahead of the decision.