Days after being nominated to the Rajya Sabha by the Bharatiya Janata Party (BJP), politician leader Subramanian Swamy on Thursday embarrassed his party by saying RBI governor Raghuram Rajan should be removed from his post as he is not fit for the nation.
“I think the RBI governor is not quite right for our country. I don’t want to say much about him, but his decision to increase interest rates so as to cut down inflation and stabilize the economy, has backfired and has badly affected the nation,” Mr. Swamy said, adding, “All the industries have collapsed and as a result unemployment has increased.”
The Governor’s actions have “led to collapse of industry and rise of unemployment in the economy”, he said. “The sooner he is sent back to Chicago, the better it would be.”
Mr. Rajan is the on-leave Professor of Finance at the University of Chicago’s Booth School of Business.
“It is Swamy who should go abroad and teach. That will put an end to chaos and blackmail in parliament every day,” said the Congress’ C Hanumanth Rao.
Dr. Rajan is currently out of the country and has not responded to the charges made by Mr. Swamy.
Addressing students at England’s Cambridge University yesterday, the central bank chief described his job of formulating monetary policy in India as a”‘joyful” and easy task, and said complexities arise when ensuring its political acceptance.
“You can’t bulldoze your way in some of these situations and therefore you have to be a little more clever… You have to understand where altering a policy from Economics 101 will make very little difference, but be politically more acceptable,” Dr Rajan said.
After assuming charge as RBI governor in September 2013, Mr. Rajan gradually raised the short-term lending rate from 7.25 per cent to 8 per cent and had retained the high rates throughout 2014.