【Mumbai】Reserve Bank of India (RBI) Governor Raghuram Rajan says global markets are at risk of a "crash" should investors start bailing out of risky assets created by the loose monetary policies of developed economies.
The comments, carried in an interview, reiterate Rajan's previous warnings that emerging markets were especially vulnerable to big shifts in capital flows brought on by the unprecedented monetary accommodation in rich nations.
Raghuram Rajan's mission is not just bringing down inflation with an iron hand, but improving the entire financial system. In an interaction with select journalists, Rajan says why he would not target foreign exchange reserves, or currency levels, but work on building institutions.
○Rajan’s tough inflation stance risks stand-off with govt
【New Delhi】Reserve Bank of India (RBI) Governor Raghuram Rajan has set himself a target of lowering consumer inflation and is even ready to raise rates to achieve it, risking friction with the new government, if he is seen as overstepping.
Rajan, well known within the RBI for pragmatism, now must work with the government of Prime Minister Narendra Modi, which understands the need for - and wants - lower inflation, but doesn't see the value in hard targets.
The governor's people skills may be tested when Finance Minister Arun Jaitley attends Sunday's RBI board meeting in Delhi, representing a government that is equally keen on boosting an economy that has just had two consecutive years of sub-5 per cent growth.
○Trade unions oppose govt's move on labour, FDI, disinvestment
【New Delhi】Central trade unions on the 8th of August strongly opposed the recent moves of the central government related to labour law amendments, foreign direct investment in various sectors and disinvestment in public sector undertakings by issuing a formal statement.
“All the central trade unions have strongly opposed in one voice, the onslaught on the working class by the Narendra Modi government through its move of massive amendment of various fundamental labour laws and that too unilaterally, totally ignoring the central trade unions,” stated the 11 trade unions after holding a meeting on the 7th August. The unions, including the BJP-backed Bharatiya Mazdoor Sangh (BMS), have called a national protest convention of workers in the national capital in the first week of September and for a plan of action to be decided in the forum.
【News source】
RBI Governor Raghuram Rajan warns of global market 'crash'
Credible policies can strengthen India's immunity: RBI governor Raghuram Rajan
Inflation targeting: Rajan's stance risks stand-off with govt
Raghuram Rajan's tough inflation stance risks stand-off with Modi govt
Trade unions oppose govt's move on labour, FDI, disinvestment
Trade unions to protest against proposed labour law changes, FDI hike
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