Reserve Bank Governor Raghuram Rajan Tuesday said Budget proposals will have a major bearing on the future course of the monetary policy, and RBI is looking at a broader package involving structural reforms helping supply side bottlenecks and higher quality spending in the document.
In his convocation address, citing the example of two mothers who babysit each other's kids, he said there is a rise in economic activity as each pays the other, but the net effect on the economy is questionable.
Even though the fall in oil prices has created some space to ease rates, HSBC Wednesday said it expects RBI Governor Raghuram Rajan to maintain status quo in the forthcoming policy review and wait for the fiscal roadmap presented in the Budget.
Reserve Bank Governor Raghuram Rajan has joined a task force of the World Economic Forum (WEF) to study the future of global financial system, whose members include bankers and policymakers from across the world.
Stating that the meaning of the maximising of shareholders' value has gone through a change, Rajan gave example of "a bunch of employees contributing a huge value to a firm", but the benefits of the value actually going to the shareholders.
Stating that monetary policies alone cannot change the world, RBI Governor Raghuram Rajan Wednesday said the governments need to create an underlying framework for growth in the long term for the world economy.