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 lower on Monday

Crude oil futures ended lower on Monday as steep declines in the US stock market fed an aversion to so-called riskier assets, which include oil. Meanwhile, the US-China trade dispute escalated as China......

Gold futures trade flat on Monday

Gold futures was trading flat on Monday as growing uncertainty over whether the United States and China will be able to reach a deal to end their escalating trade war fueled safe-haven demand for the precious......

Jeera futures trade higher on rising demand

Jeera futures traded higher on NCDEX on the back of rising physical and export demand at the spot market. However, higher availability of crop this season, capped some gains.The contract for May delivery......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......