BJP leader Subramanian Swamy has asked for Reserve Bank of India Governor, Raghuram Rajan, to be sacked if the latter didn’t cut the interest rate.
His tweet on Monday said:
Swamy said that foreigners were minting money due to high interest rate in India because of what he termed ‘interest arbitrage.’
While responding to a twitter user who reminded him that his threat was counterproductive, the BJP leader hit back by saying, ” He’s taken a green card from the US which is penultimate stage of US citizenship. Can’t take the heat? Leave.”
He said that low interest rate meant growth and employment generation.
The RBI governor is expected to unveil the central bank’s bi-monthly monetary policy on Tuesday.
There are expectations that he may announce interest rate cut by 0.25 percent.
The BJP government has been visibly unhappy with the powers enjoyed by the RBI governor. Keeping this in mind the central government, earlier this year, signalled it will remove control of interest rates from the central bank. Its controversial plan was attacked by many economists and bankers, who felt this was a threat to independent monetary policy.
The BJP government is also trying to bring in amendments to the existing RBI Act, which will significantly cut the governor’s power including his right to veto the majority’s decision on monetary policy.