Business Mantra News
The former RBI Governor Raghuram Rajan supported the Monetary Policy Committee (MPC) of RBI led by his successor Urjit Patel which has been facing criticism from some Government Advisers for setting interest rates on the higher side. While speaking to Bloomberg Television in Davos, Rajan said that the six member panel headed by Urjit Patel was doing a good job by focusing on inflation. He said that price goals were important for those countries suffering from high inflation.
The most of the economists in Bloomberg survey projected that Reserve Bank of India headed by Urjit Patel should keep the repurchase rate below/at 6% while reviewing its monetary policy on February 7, 2018 due to prevailing high inflammatory positions within the country.
Raghuram Rajan also played key role in stimulating Financiers in India to start identifying and cleaning up about $210 billion of strained assets in their Balance Sheets.
The Rajan said that the enactment of new Bankruptcy Code would be helpful for Banks to reconcile their debts.