Malcolm Merlyn Posted June 18, 2016 Posted June 18, 2016 Its all over the news.Arguably the best Central Banker in the world will leave RBI and go back to teaching.Modi govt has been disappointing and has a big mistake by not offering Rajan a second term. Is Modi under pressure from RSS and did the RSS spoke through Subramaniam Swamy? Big Big Big Mistake by Modi. tweaker 1
G_B_ Posted June 18, 2016 Posted June 18, 2016 Wise move...finally rate cuts can happen Sent from my Wileyfox Swift using Tapatalk tweaker 1
Malcolm Merlyn Posted June 18, 2016 Author Posted June 18, 2016 Wise move...finally rate cuts can happen Sent from my Wileyfox Swift using Tapatalk Are you freaking serious?Or is this sarcastic?
G_B_ Posted June 18, 2016 Posted June 18, 2016 I am serious. Once the modi gov passed the finance bill where he could be out voted on rate cuts the gig was up Sent from my Wileyfox Swift using Tapatalk tweaker 1
Malcolm Merlyn Posted June 18, 2016 Author Posted June 18, 2016 I am serious. Once the modi gov passed the finance bill where he could be out voted on rate cuts the gig was up Sent from my Wileyfox Swift using Tapatalk No.He cant be outvoted now also.Recheck the amendments.
G_B_ Posted June 18, 2016 Posted June 18, 2016 I checked he can in the monetary policy committee Sent from my Wileyfox Swift using Tapatalk
Malcolm Merlyn Posted June 18, 2016 Author Posted June 18, 2016 I checked he can in the monetary policy committee Sent from my Wileyfox Swift using Tapatalk Link please.
Texan Posted June 18, 2016 Posted June 18, 2016 Never saw any other RBI Governor plastered so much over the news in the past. I guess having a suave personality benefited him. tweaker 1
G_B_ Posted June 18, 2016 Posted June 18, 2016 3 hours ago, Malcolm Merlyn said: Link please. "So once the Bill is passed (in May), the monetary policy committee will be set up thereafter and I would expect around second or third quarter it (MPC) would get operational," he said. Three members of the MPC will be nominated by the government, he said adding these would be eminent persons from outside. "No they won't be government officials," he said. The remaining three members would be from RBI with the Governor being the ex officio Chairperson. Deputy Governor of RBI in charge of the monetary policy will be a member, so will an Executive Director of the Central bank. Each member shall have one vote and in case of a tie, the Governor shall have a second or casting vote, he said. Another official said the governor will not have a veto power and can only be deciding factor in case of a tie. http://www.dnaindia.com/money/report-monetary-policy-committee-to-start-operations-from-september-2186206
biglebowski Posted June 18, 2016 Posted June 18, 2016 Rajan is very conservative when comes to rate cuts
Malcolm Merlyn Posted June 18, 2016 Author Posted June 18, 2016 Rajan is very conservative when comes to rate cuts Lets create a bubble shall we?
jalebi_bhai Posted June 19, 2016 Posted June 19, 2016 The timing is right I feel. His high lending rates are no bueno for our SME. He's done his job though. Wonder who will replace him. G_B_ 1
ravishingravi Posted June 19, 2016 Posted June 19, 2016 Big loss. Major volatility can be expected in coming days.
asterix Posted June 19, 2016 Posted June 19, 2016 Why so much dependent n Rajan? Will there be no other suitable candidate? Tow how long should he continued? Another 10-15 years? randomGuy and chewy 2
chewy Posted June 19, 2016 Posted June 19, 2016 These central bankers are over rated, won't make a difference when he leaves and who ever comes in. but Rajan was stubborn at holding interest rates high after the collapse in oil price. tweaker 1
chewy Posted June 19, 2016 Posted June 19, 2016 2 hours ago, asterix said: Why so much dependent n Rajan? Will there be no other suitable candidate? Tow how long should he continued? Another 10-15 years? that's what makes me laugh, his cheerleaders claiming "unstability" will follow, well if so much relies on this one person best he should be sacked. tweaker 1
beautifulgame Posted June 19, 2016 Posted June 19, 2016 A real shame and we are the losers . He was finally reforming the banking sector and hopefully whoever comes in next has similar courage to tackle .Somehow doubt it . Dr. Raghuram G. Rajan, Governor, Reserve Bank of India sent a message to RBI staff today. Given the significance of the matter, the Reserve Bank places the message on its website for wider dissemination. Alpana Killawala Principal Adviser Press Release: 2015-2016/2941 Message to RBI staff from Dr. Raghuram Rajan. Dear Colleagues, I took office in September 2013 as the 23rd Governor of the Reserve Bank of India. At that time, the currency was plunging daily, inflation was high, and growth was weak. India was then deemed one of the “Fragile Five”. In my opening statement as Governor, I laid out an agenda for action that I had discussed with you, including a new monetary framework that focused on bringing inflation down, raising of Foreign Currency Non-Resident (B) deposits to bolster our foreign exchange reserves, transparent licensing of new universal and niche banks by committees of unimpeachable integrity, creating new institutions such as the Bharat Bill Payment System and the Trade Receivables Exchange, expanding payments to all via mobile phones, and developing a large loan data base to better map and resolve the extent of system-wide distress. By implementing these measures, I said we would “build a bridge to the future, over the stormy waves produced by global financial markets”. Today, I feel proud that we at the Reserve Bank have delivered on all these proposals. A new inflation-focused framework is in place that has helped halve inflation and allowed savers to earn positive real interest rates on deposits after a long time. We have also been able to cut interest rates by 150 basis points after raising them initially. This has reduced the nominal interest rate the government has to pay even while lengthening maturities it can issue – the government has been able to issue a 40 year bond for the first time. Finally, the currency stabilized after our actions, and our foreign exchange reserves are at a record high, even after we have fully provided for the outflow of foreign currency deposits we secured in 2013. Today, we are the fastest growing large economy in the world, having long exited the ranks of the Fragile Five. We have done far more than was laid out in that initial statement, including helping the government reform the process of appointing Public Sector Bank management through the creation of the Bank Board Bureau (based on the recommendation of the RBI-appointed Nayak Committee), creating a whole set of new structures to allow banks to recover payments from failing projects, and forcing timely bank recognition of their unacknowledged bad debts and provisioning under the Asset Quality Review (AQR). We have worked on an enabling framework for National Payments Corporation of India to roll out the Universal Payment Interface, which will soon revolutionize mobile to mobile payments in the country. Internally, the RBI has gone through a restructuring and streamlining, designed and driven by our own senior staff. We are strengthening the specialization and skills of our employees so that they are second to none in the world. In everything we have done, we have been guided by the eminent public citizens on our Board such as Padma Vibhushan Dr. Anil Kakodkar, former Chairman of the Atomic Energy Commission and Padma Bhushan and Magsaysay award winner Ela Bhatt of the Self Employed Women’s Association. The integrity and capability of our people, and the transparency of our actions, is unparalleled, and I am proud to be a part of such a fine organization. I am an academic and I have always made it clear that my ultimate home is in the realm of ideas. The approaching end of my three year term, and of my leave at the University of Chicago, was therefore a good time to reflect on how much we had accomplished. While all of what we laid out on that first day is done, two subsequent developments are yet to be completed. Inflation is in the target zone, but the monetary policy committee that will set policy has yet to be formed. Moreover, the bank clean up initiated under the Asset Quality Review, having already brought more credibility to bank balance sheets, is still ongoing. International developments also pose some risks in the short term. While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016. I will, of course, always be available to serve my country when needed. Colleagues, we have worked with the government over the last three years to create a platform of macroeconomic and institutional stability. I am sure the work we have done will enable us to ride out imminent sources of market volatility like the threat of Brexit. We have made adequate preparations for the repayment of Foreign Currency Non-Resident (B) deposits and their outflow, managed properly, should largely be a non-event. Morale at the Bank is high because of your accomplishments. I am sure the reforms the government is undertaking, together with what will be done by you and other regulators, will build on this platform and reflect in greater job growth and prosperity for our people in the years to come. I am confident my successor will take us to new heights with your help. I will still be working with you for the next couple of months, but let me thank all of you in the RBI family in advance for your dedicated work and unflinching support. It has been a fantastic journey together! With gratitude Yours sincerely Raghuram G. Rajan tweaker 1
beautifulgame Posted June 19, 2016 Posted June 19, 2016 Why so much dependent n Rajan? Will there be no other suitable candidate? Tow how long should he continued? Another 10-15 years? The question is not whether we have another suitable alternative but whether they will similar courage as Rajan to effectively take these big decisions . The NPA concept came into banking sectors in early 90s and yet it took Rajan to implement real time NPA concept in our banking system .And that's just one example . There were plenty of issues in financial sector that were pending for years which banks and financial sector were finally forced to carry out despite huge outcry . The fear is whether the next Governor will power to carry out these reforms or will go back to the artificial bubble we were living in .Somehow doubt it . tweaker 1
beautifulgame Posted June 19, 2016 Posted June 19, 2016 I am serious. Once the modi gov passed the finance bill where he could be out voted on rate cuts the gig was up Sent from my Wileyfox Swift using Tapatalk That's not accurate .There were three RBI appointees in the committee and if there was a tie RBI governor had the power to decide .The Monetary policy was still in the control of RBI . The fact that Govt decided against making the no of Govt appointees as majority in itself was a success for Rajan . That's not accurate .There were three RBI appointees in the committee and if there was a tie RBI governor had the power to decide .Hence the Monetary policy was still in the control of RBI . The fact that Govt decided against making the no of Govt appointees as majority in itself was a success for Rajan .
G_B_ Posted June 19, 2016 Posted June 19, 2016 That's a big step down from setting the rates on your own. The RBI itself is a dovish organisation with rajan being a hawk himself. Would systematically have been outvoted. Sent from my Wileyfox Swift using Tapatalk tweaker 1
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