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LORD JESUS CHRIST SAYS

If we confess our sins, he is faithful and just and will forgive us our sins and purify us from all unrighteousness.

7 Feb 2016

STOCK MARKET- MONETARY POLICY PANEL TALKS WITH GOVT. OVER-RBI




Mumbai: Reserve Bank of India Governor Raghuram Rajan has said the central bank has finished negotiations with the Finance Ministry on the vexed issue of monetary policy committee, but declined to give details, saying the government will table it before Parliament through an amendment.

"It is completed. Everything is done, certainly the discussions between us and the government," Mr Rajan told reporters from wire agencies last week when asked about the progress on MPC.

He added that now the government has to decide on the timing of tabling the amendments to the RBI Act before Parliament.

Mr Rajan did not get into the specifics, saying, "I think the government does not want to discuss this outside Parliament with due respect for parliamentary procedures."

He, however, reiterated that all the discussions surrounding issues that have generated a lot of speculation are over.

"As far as the discussion of the details goes, I think we are all on board," he clarified.

In a recent speech, Mr Rajan had said the central bank was looking forward to the amendments to the RBI Act before migration to the inflation-targeting framework.

"We have absolutely no intent of departing from the inflation framework that has been agreed with the government. We look forward to the government amending the RBI Act to usher in the monetary policy committee, further strengthening the framework," Mr Rajan had said.

The representation of nominees from the government as well as the RBI in the committee, which will set the rates, has been an issue of intense speculation after Mr Rajan said in August that he did not want the veto on rates to be with the central bank governor.

"RBI believes that institutionalising the process of monetary policy formulation is vital, given that the government has given RBI a clear inflation objective," Mr Rajan had said earlier, hinting that he was completely fine with not having the veto power.

"If we continue to retain the veto, it does not change the situation, it maintains the status quo," he said, referring to the current practice where the central bank governor can overrule the advice of the technical advisory committee.

The RBI joined a growing list of central banks in the world with inflation targeting as an explicit objective by signing an agreement with the government last February.

The agreement was signed after a committee, headed by Deputy Governor Urjit Patel, recommended a shift to this practice.
"It is completed. Everything is done, certainly the discussions between us and the government," Mr Rajan told reporters from wire agencies last week when asked about the progress on MPC.
He added that now the government has to decide on the timing of tabling the amendments to the RBI Act before Parliament.
Mr Rajan did not get into the specifics, saying, "I think the government does not want to discuss this outside Parliament with due respect for parliamentary procedures."
He, however, reiterated that all the discussions surrounding issues that have generated a lot of speculation are over.
"As far as the discussion of the details goes, I think we are all on board," he clarified.
In a recent speech, Mr Rajan had said the central bank was looking forward to the amendments to the RBI Act before migration to the inflation-targeting framework.
"We have absolutely no intent of departing from the inflation framework that has been agreed with the government. We look forward to the government amending the RBI Act to usher in the monetary policy committee, further strengthening the framework," Mr Rajan had said.
The representation of nominees from the government as well as the RBI in the committee, which will set the rates, has been an issue of intense speculation after Mr Rajan said in August that he did not want the veto on rates to be with the central bank governor.
"RBI believes that institutionalising the process of monetary policy formulation is vital, given that the government has given RBI a clear inflation objective," Mr Rajan had said earlier, hinting that he was completely fine with not having the veto power.
"If we continue to retain the veto, it does not change the situation, it maintains the status quo," he said, referring to the current practice where the central bank governor can overrule the advice of the technical advisory committee.
The RBI joined a growing list of central banks in the world with inflation targeting as an explicit objective by signing an agreement with the government last February.
The agreement was signed after a committee, headed by Deputy Governor Urjit Patel, recommended a shift to this practice.

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