×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Near-zero rates not apt for India: Tarapore

Near-zero rates not apt for India: Tarapore
Comment E-mail Print Share
First Published: Fri, Mar 27 2009. 09 34 PM IST
Updated: Fri, Mar 27 2009. 09 34 PM IST
Mumbai: The near-zero interest rate adopted by industrial countries would not be appropriate in the Indian context, said Reserve Bank of India’s former deputy governor and economist S.S. Tarapore in the ‘Business Line’ newspaper on Friday.
“With artificially low interest rates, there could be malinvestment and misallocation of resources, which would take many years to rectify,” Tarapore wrote in a column.
Noting that this was a crucial period for the Indian economy, he maintained that RBI should be left on its own to work out the modalities of monetary policy over the next three months without government pressure to ease rates further.
Comment E-mail Print Share
First Published: Fri, Mar 27 2009. 09 34 PM IST