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Rajan Lays Challenge to Modi as India Easing Seen Tied to Budget
2014-12-03 01:30:14| Appliances - Topix.net
India 's central bank chief, pursuing a campaign to strengthen independence, took one of his biggest steps yet in pushing the nation's government to rein in a fiscal deficit with a signal that lower interest rates depend on budget tightening. Reserve Bank of India Governor Raghuram Rajan held the benchmark rate at 8 percent yesterday and said he may lower it early next year, and not necessarily at the next scheduled policy review on Feb. 3. The decision, in which he rebuffed calls for a cut, had analysts speculating whether he would reduce the rate before or after Prime Minister Narendra Modi's government presents the fiscal budget a few weeks later.
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