Dear Sir,
The Indian government is seriously contemplating to remove the veto power vested with the governor of Reserve Bank, the country’s central bank, in making the final decision on short-term interest rates.
Several Indian banking professionals and economists are concerned and apprehensive about the move, and not without any reason too.
They attribute their reasoning for this by stating that the power to decide on interest rates should continue to be vested with the Reserve Bank’s governor as it is responsible to rein in inflation. The Reserve Bank governor’s existing powers should not be curtailed under any circumstance.
Raghuram Rajan, a former chief economist with the International Monetary Fund (IMF), is an acclaimed international banker and economist.
After taking over Reserve Bank governor’s position, he has introduced radical reforms in India’s banking sector which has yielded both tangible and intangible results, whether it is monetary policy or containing inflation.
Diluting the governor’s powers at this juncture will undermine the central bank’s de facto control over rates.
Let the finance ministry exercise extreme caution before going ahead with any critical decision which may adversely affect the growth of India.
V Kalyanaraman
(e-mail address supplied)
Let us all speak softly
Dear Sir,
The article “Give up yelling and welcome peace of mind” (Gulf Times, July 26) made good reading. People who regularly yell at others are neither liked at home nor in the working place. They set poor examples for children who need good role models both at home and school. So, parents and teachers must be extra careful about their choice of words and tones of speaking.
As at home, people should not yell at their working places too. Yelling, whether at home or in office, doesn’t solve any problems. In fact it adds to them. Self-restraint and gentility are essential in tackling issues at the workplace. People who yell at others will be avoided by others. No one will like to associate with them. The habit is not good for one’s health also. Therefore, let us all speak softly and have peace of mind.
C Robinson
[email protected]
