Criticism using arguments unsupported by evidence is widespread, rues outgoing RBI governorAn independent central bank is essential for ensuring stable and sustainable growth in any economy, said Raghuram Rajan, Governor Reserve Bank of India (RBI). Some politicians from the ruling BJP-led coalition had criticised the central bank for not doing enough to support growth, including making timely interest rate reductions. “Criticism of the central bank using arguments unsupported by evidence is widespread,” Mr. Rajan said. “The best way central banks can support growth over the medium term is by keeping inflation low and stable,” Mr. Rajan said in a speech at the 10th Statistics Day Conference held at the RBI headquarters in the city. Perhaps this is why successive governments, in their wisdom, have given the RBI a measure of independence,” he said.

Source: The Hindu July 26, 2016 17:15 UTC