I had worried about this aspect very early on. It is strange that not a word has come from Indian central bank on the decision except for confusing notifications. This is such a matter that no talk only creates more suspicion around the problem. If the Governor is reticent and fighting behind the scenes, why not appoint someone else to do the talk? I mean someone has to say atleast something.
Now, we have questions like: RBI’s silence on demonetisation raises questions on its independence. Even worse, the Bank Officers’ Union demands resignation of RBI chief given the chaos.
I am really surprised no banker/policy expert etc has made this request. Tons of paeans were sung by one and all on the appointment and more funnily connecting all kinds of powers to the central bank. Even post demonetisation, similar experts hailed it as one of the best moves ever. None have asked now why is the central bank not speaking on the matter? If RBI is not saying things as it has been kept off the loop and so on, then it is even a more serious matter.
The favorite topic of RBI independence has suddenly disappeared when it matters quite a bit. For all you know, one of the most reputed newspapers is reporting that PM indicating a rate cut post the strike yesterday. We would imagine such news coming from central bank and atmost from FM who can at best say – one wishes RBI does cut rates.
I mean reports saying that post demonetisation case for rate cuts has increased is like a joke. The entire effort and noise around so called central bank reforms and making our policy like a developed one has become almost a joke. It looks more a case of monetary policy being run from Delhi now…