The draft version of the government’s Financial Code, released last week, could have important implications for the functioning of the Reserve Bank of India (RBI). The adoption of a voting monetary policy committee would be a positive step. However, there are still crucial details that need ironing out. In particular, the recommendation that the majority of the panel be appointed by the government is a cause for concern given the track record of previous governments attempting to dampen the central bank’s power and independence.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services