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Lower Interest Rates Not Necessarily Result in Growth: Y V Reddy
June 15, 2017
As the tension between the government and the central bank continues to increase, former RBI Governor Y V Reddy that the by merely reducing the interest rates we can’t expect guaranteed growth and liquidity. He said that we can’t assume that slashed interest rates will boost growth through increased private investment, adding that he will still give a benefit of doubt to the Monetary Policy Committee.
According to Reddy, without understanding the international monetary system we can’t expect to understand the problems of global finances. In the current global system, capital becomes stronger through mobility but not the labor.
