India’s cenbank chief a hawk flying solo against inflation

Indian central bank Governor Duvvuri Subbarao’s standoff with a finance ministry that wants interest rates reduced sooner rather than later may prove the defining moment of his tenure.

But while he wins plaudits for asserting the Reserve Bank of India’s autonomy, Subbarao’s policy draws mixed reviews.

Indian interest rates are among the highest of all the major world economies at a time when the country is set to register

its worst growth rate in a decade, yet inflation has remained uncomfortably high for nearly three years.

via Business feed http://www.scmp.com/business/banking-finance/article/1080526/indias-cenbank-chief-hawk-flying-solo-against-inflation