Mumbai
\nDays after Deputy Governor Viral Acharya raised concerns over the central bank\u2019s autonomy, the Reserve Bank employees\u2019 association on Monday came out in support of the views, saying \u201cundermining the central bank is a recipe for disaster\u201d and asked the government to stop nibbling at its autonomy.<\/p>\n
Delivering the AD Shroff memorial lecture last week here, Acharya said governments that did not respect their central banks\u2019 independence would sooner or later incur the wrath of financial markets.<\/p>\n
\u201cWe firmly hold that undermining the central bank is a recipe for disaster and government must desist,\u201d All India Reserve Bank Association said in a letter.<\/p>\n
The association said Acharya\u2019s comments about government\u2019s interventionist role vis-a-vis the RBI have created a flutter across the nation.<\/p>\n
\u201cThis is, however, not a sudden outburst, but was waiting to happen due to long simmering discontent,\u201d the association said.<\/p>\n
Giving a cricketing analogy, Acharya had said a government\u2019s horizon of decision-making was rendered short, like the duration of a T20 match, by several considerations.<\/p>\n
\u201cThere are always upcoming elections of some sort national, state, mid-term,\u201d he said, adding \u201cas elections approach, delivering on proclaimed manifestos of the past acquires urgency; where manifestos cannot be delivered upon, populist alternatives need to be arranged with immediacy.\u201d<\/p>\n
In contrast, a central bank plays a Test match, trying to win each session but importantly also survive it so as to have a chance to win the next session, and so on, the Deputy Governor had said.<\/p>\n
He said the central bank is not directly subject to political time-pressures and the induced neglect of the future by virtue of being nominated rather than elected, central bankers have horizons of decision-making that tend to be longer than that of governments, spanning election cycles or war periods.<\/p>\n
The letter said the hiatus has widened now and the deputy governor has spoken more \u201cin disgust and despondency\u201d due to continuous nibbling by the government and the finance ministry.<\/p>\n
\u201cEven the RBI board is being sought to be stuffed in a particular direction which would prompt the discerning people to look askance, and make it difficult for RBI to frame policies,\u201d the union said in the letter.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mumbai Days after Deputy Governor Viral Acharya raised concerns over the central bank\u2019s autonomy, the Reserve Bank employees\u2019 association on Monday came out in support of the views, saying \u201cundermining the central bank is a recipe for disaster\u201d and asked the government to stop nibbling at its autonomy. Delivering the AD Shroff memorial lecture last […]<\/p>\n","protected":false},"author":1,"featured_media":45819,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-45818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/45818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=45818"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/45818\/revisions"}],"predecessor-version":[{"id":45820,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/45818\/revisions\/45820"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/45819"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=45818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=45818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=45818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}