Breaking News

You are here » Indian-Commodity  :  Top News  :  Low interest rates globally could distort markets: Raghuram Rajan

06-Sep2016

Low interest rates globally could distort markets: Raghuram Rajan

Raghuram Rajan, after stepping down as the Governor of the Reserve Bank of India has warned that 'low interest rates globally could distort markets and would be difficult to abandon'. He said that low interest rates should not be a substitute for “other instruments of policy” and 'various kinds of reforms' that are needed to encourage growth.

Rajan further stated that countries around the world, including the United States and Europe, have kept interest rates low as a way to encourage growth. But countries could become “trapped” by fear that when they eventually raised rates, they 'would see growth slowdown.

His views hold importance as the world's central banks appear to be at a loss about how to get global growth moving again and there are numbers of voices saying that low rates are not doing the job and that governments must take other, more politically difficult steps to reinvigorate growth.

Talking about India, Rajan said his tight monetary policy had helped bring India's rate of inflation - currently about 6 percent - down to the upper end of the government's target range and expressed hope that his successor will finish the process of cleaning bank balance sheets.


Related News

View all news

Crude oil futures end higher on Thursday

Crude oil futures ended higher on Thursday with marginal gains for the truncated week, as traders weighing near term crude supply and demand prospects. Oil prices took some support with tighter supply......

Turmeric futures trade higher on rising demand

Turmeric futures traded higher on NCDEX as market participants enlarged their holdings on account of rising demand for standing crop in the physical market. Moreover, government procurement in some states......

Coriander futures trade up on restricted arrivals

Coriander futures traded up on NCDEX as speculators built up fresh positions amid rising spot demand. Besides, tight stocks on account of restricted arrivals from major growing regions also fuelled the......

Top News

View all news

Lupin seeks more time from commerce ministry to complete project in Indore SEZ

Lupin has sought more time from the commerce ministry to complete its project, with proposed investment of Rs 205.69 crore, in the Indore Special Economic Zone (SEZ). The company is setting up its pharma......

Tata Sponge Iron to shift its registered office to Kolkata

Tata Sponge Iron has decided to shift its registered office from Keonjhar in Odisha to Kolkata, subject to the approval of the members of the company and other regulatory authorities. The company has also......

GVK Power's arms ink pact with ADIA, NIIF

GVK Power and Infrastructure's subsidiaries -- GVK Airports Developer (GVKADL) and GVK Airport Holdings (GVKAHL) have signed a term sheet and exclusivity agreement with Abu Dhabi Investment Authority (ADIA)......