Mumbai, 1 June-2014(PTI): Ahead of monetary policy review on Tuesday, Reserve Bank of India (RBI)…
Mumbai: As Raghuram Rajan left the key policy rates unchanged in the second bi-monthly monetary policy of the fiscal, one of the questions looming on everyone’s mind in the post-policy announcement press conference was whether the Reserve Bank of India Governor will say anything about the war raging among the politicos over his re-appointment.
Rajan stuck to the script of giving the policy synopsis and took questions in the press conference and was prepared with a statement about the extension of his tenure when the question was asked.
“I have a statement prepared to read out,” he said, visibly amused by the war of words that has been going on in New Delhi and the speculation by the media, over his re-appointment.
“It would be cruel of me to spoil all the fun the press is having,” he read out.
“I’m intrigued by all the letters I’ve supposed to have written,” he said.
Rajya Sabha member Subramanian Swamy has written at least two scathing letters to the prime minister, seeking Rajan’s immediate removal from his post, criticising his abilities are the RBI governor and questioning his integrity as he was “mentally not fully Indian” indicating to the fact that the RBI Governor holds an American green card.
“In the matter,” however, he continued, “the decision is reached after detailed discussion between the government and the incumbent. I cannot do better than point you to the statements made by the finance minister and the prime minister.”
Finance Minister Arun Jaitley has maintained that the decision will be taken when the time comes. He has earlier refused to comment on the matter when the question was posed to him by the media, saying it’s something the government would discuss with the press.
Prime Minister Narendra Modi too, has refrained from making a comment which can be inferred either way.