RBI governor Raghuram Rajan(PTI)
RBI governor Raghuram Rajan(PTI)

RBI chief Rajan urges IMF to act against ‘extreme’ policies

Reserve Bank of India (RBI) Governor Raghuram Rajan urged the International Monetary Fund (IMF) on Monday to play an active role in questioning the stimulus policies of developed economies and called on emerging markets to have a bigger voice in global debates.
By HT Correspondent | Hindustan Times, Mumbai
UPDATED ON OCT 20, 2015 09:31 PM IST

Reserve Bank of India (RBI) Governor Raghuram Rajan urged the International Monetary Fund (IMF) on Monday to play an active role in questioning the stimulus policies of developed economies and called on emerging markets to have a bigger voice in global debates.

Raghuram Rajan, a former chief economist of the IMF, said developed countries were adopting monetary policies without consideration for the negative impact they have on the global economy and he noted emerging markets were engaging in currency intervention that sparked competitive devaluations.

In a speech ahead of a G20 summit in Turkey next month, Rajan said it was time for policymakers, led by the IMF, to address these “extreme” policies, otherwise “we have to worry where this ends.”

“The IMF has been sitting on the sidelines and applauding these kinds of policies right from when they have been initiated, ?and hasn’t really questioned the value of these kinds of policies,” he told a G20 consultation meeting.

“We can do better,” he said, calling on emerging markets to push back against such policies.

Rajan did not single out any one country, but he has emerged as a leading critic of ultra-loose monetary policies and those that he says have purposefully pushed down their currencies to gain a competitive advantage.

Some central banks, including those in the United States and the euro zone, adopted so-called quantitative easing policies to counter the global financial crisis. After cutting rates to zero, they pumped cash into their economies to try to revive economic activity. The United States is now considering raising interest rates for the first time since 2006.

Indian media has speculated that Rajan could be a contender to head the IMF after the five-year term of the current head, Christine Lagarde, ends in 2016. Rajan denies any interest in the position and his three-year tenure at the RBI doesn’t end until September 2016.

Since his RBI appointment in 2013, Rajan has called on emerging markets to have a bigger voice globally, including at the IMF. Otherwise, industrialised economies will always lead the debate, he says.

Rajan said it was critical emerging markets develop more capable economists, who can help steer discussions among policymakers globally.

“We must, across the emerging world, realise that some of the reasons why global governance seems to be against us is we are not putting enough resources into this,” he said.

“Yes, we go to our think tanks, etc. But we don’t have people working in government who have that kind of training, that kind of capacity,” he added.

SHARE THIS ARTICLE ON
app
Close
In early Tuesday trade, the market capitalisation of BSE-listed companies was at <span class='webrupee'>₹</span>1,91,25,467.48 crore.(REUTERS)
In early Tuesday trade, the market capitalisation of BSE-listed companies was at 1,91,25,467.48 crore.(REUTERS)

India markets closed on Tuesday for holiday

Reuters
PUBLISHED ON JAN 26, 2021 07:33 AM IST
The NSE Nifty 50 index ended 0.93% lower at 14,238.9 on Monday, while the S&P BSE Sensex fell 1.09% to 48,347.59.
Close
US Dollar banknotes are seen in this photo illustration(Reuters File Photo )
US Dollar banknotes are seen in this photo illustration(Reuters File Photo )

Dollar firm as jittery markets look to Fed for catalysts

Reuters, Singapore
PUBLISHED ON JAN 26, 2021 06:56 AM IST
Bets the US dollar keeps falling, to extend a downtrend which began last March, hit an almost decade high last week, positioning data shows.
Close
The LNG Croatia FSRU liquid natural gas (LNG) storage vessel and import facility at the LNG terminal, operated by LNG Croatia LLC, in Krk, Croatia, on Monday, Jan. 25, 2021. The market for vessels carrying liquefied natural gas boomed last year as the world�s biggest trading houses and oil majors booked up ships to take advantage of the�winter demand boom�in fuel demand. Photographer: Petar Santini/Bloomberg(Bloomberg)
The LNG Croatia FSRU liquid natural gas (LNG) storage vessel and import facility at the LNG terminal, operated by LNG Croatia LLC, in Krk, Croatia, on Monday, Jan. 25, 2021. The market for vessels carrying liquefied natural gas boomed last year as the world�s biggest trading houses and oil majors booked up ships to take advantage of the�winter demand boom�in fuel demand. Photographer: Petar Santini/Bloomberg(Bloomberg)

Oil holds gain near $53 as tightening supply offsets virus woes

Bloomberg
PUBLISHED ON JAN 26, 2021 06:35 AM IST
Oil has surged almost 50% since the end of October but the rally has started to falter amid concerns about a sustained recovery in global fuel demand.
Close
Dr K Subba Reddy (HT Photo)
Dr K Subba Reddy (HT Photo)

Budget 2021: Telangana doctor says investments in healthcare must be boosted

By Srinivasa Rao Apparasu, Hindustan Times, Hyderabad
PUBLISHED ON JAN 26, 2021 02:49 AM IST
  • Medical staff in hospitals wore bulky personal protective equipment (PPE) for hours, leaving them dehydrated, exhausted and drenched in sweat.
Close
Construction workers travelling on a winter morning amid heavy fog, in Noida. (Sunil Ghosh / Hindustan Times)
Construction workers travelling on a winter morning amid heavy fog, in Noida. (Sunil Ghosh / Hindustan Times)

Have the labour markets recovered post-lockdown?

By Rosa Abraham , Amit Basole, New Delhi
UPDATED ON JAN 26, 2021 04:48 AM IST
  • Several high-frequency indicators such as the Nomura India Business Resumption Index (NIBRI), Purchasing Managers’ Indices (PMI) show a strong sequential recovery in the economy.
Close
Rule 10 of Legal Metrology (Packaged Commodities) Rules, 2011, provides that e-commerce entities have to display details of the manufacturer.(Reuters)
Rule 10 of Legal Metrology (Packaged Commodities) Rules, 2011, provides that e-commerce entities have to display details of the manufacturer.(Reuters)

CAIT alleges Amazon, Flipkart, Zomato and Swiggy of flouting rules

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 06:19 PM IST
CAIT Secretary General alleged that similar obligations were imposed on e-commerce food business operators.
Close
Amazon has asked the High Court in New Delhi to enforce the decision of a Singapore arbitrator.(Reuters)
Amazon has asked the High Court in New Delhi to enforce the decision of a Singapore arbitrator.(Reuters)

Amazon tries to block Future's asset sale to Reliance after regulatory approval

Reuters, New Delhi
PUBLISHED ON JAN 25, 2021 05:52 PM IST
The Amazon filing also argued that Future should not rely on any regulatory approval it has received, in light of the arbitrator's injunction.
Close
FILE PHOTO: The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo(REUTERS)
FILE PHOTO: The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo(REUTERS)

Apple faces Italian suit over iPhones that wear out too quickly

Bloomberg
PUBLISHED ON JAN 25, 2021 04:40 PM IST
The lawsuit mirrors US cases over claims that the company misled consumers about iPhone battery power and software updates that slowed the performance of the devices.
Close
A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India.(Reuters)
A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India.(Reuters)

Rupee rises for 5th straight session, settles 3 paise higher at 72.94

PTI
PUBLISHED ON JAN 25, 2021 04:08 PM IST
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.10 per cent to 90.32.
Close
Finance Minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1.(PTI)
Finance Minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1.(PTI)

Government may tweak customs duties on host of goods in Budget 2021

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 03:58 PM IST
Sources said that while import duties could be tweaked on over 20 products, the customs duties could be removed on select raw materials.
Close
Sensex settled the session at 48,347, down 531 points(PTI)
Sensex settled the session at 48,347, down 531 points(PTI)

Sensex tanks over 500 points, Nifty ends below 14,250

PTI, Mumbai
UPDATED ON JAN 25, 2021 08:28 PM IST
Over the last three sessions, the BSE Sensex has lost 1,444.53 points or 2.90 per cent and the NSE Nifty has shed 405.80 points or 2.77 per cent.
Close
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of <span class='webrupee'>₹</span>1.10 lakh crore in revenue arising on account of the implementation of the GST.(PTI)
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of 1.10 lakh crore in revenue arising on account of the implementation of the GST.(PTI)

FinMin releases weekly installment of 6,000 cr to meet GST shortfall

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 03:06 PM IST
Till now, 70 per cent of the total estimated GST compensation shortfall has been released to the states and union territories (UTs) with legislative assembly.
Close
The least registration in the ESI scheme for both men and women in the formal sector came in the month of April 2020.(Representational photo)
The least registration in the ESI scheme for both men and women in the formal sector came in the month of April 2020.(Representational photo)

NSO releases employment outlook report

By hindustantimes.com | Written by Deepali Sharma, Hindustan Times, New Delhi
PUBLISHED ON JAN 25, 2021 02:54 PM IST
In all the three schemes, the number of new registrations increased after June 2020.
Close
Gold is considered a hedge against inflation, likely from widespread stimulus. (HT Photo) (Representative Image)
Gold is considered a hedge against inflation, likely from widespread stimulus. (HT Photo) (Representative Image)

Gold eases on doubts over US stimulus passage

Reuters
PUBLISHED ON JAN 25, 2021 02:50 PM IST
Spot gold fell 0.1% to $1,850.91 per ounce by 0822 GMT, having dropped 0.9% in the previous session. US gold futures fell 0.2% to $1,851.80.
Close
A government agricultural officer collects urine samples from pigs arriving at a slaughterhouse in Wuyi county, Zhejiang province, China.(REUTERS)
A government agricultural officer collects urine samples from pigs arriving at a slaughterhouse in Wuyi county, Zhejiang province, China.(REUTERS)

China's pigs become unexpected threat to palm oil's rally

Bloomberg
PUBLISHED ON JAN 25, 2021 02:16 PM IST
The world’s biggest pork producer and consumer is scooping up unprecedented quantities of soybeans and corn on world markets to feed domestic hog herds.
Close
SHARE
Story Saved
OPEN APP