Cannot fault Rajan for various 'wrongs': Shourie

June 15, 2016 16:54

Former Union Minister Arun Shourie today said RBI Governor Raghuram Rajan cannot be blamed for various "wrongs", including keeping the interest rates high, but made clear that he was against targeting of inflation as an objective of monetary policy.

"I was against this targeting of inflation as an objective of monetary policy. We are too diverse, too many things happen in India... that is the root of the problem, not Raghuram Rajan," Shourie said.

"Everybody is saying he (Rajan) has kept the interest rates high, but what about the Parliament which passed the Act saying that the object of monetary policy is control of inflation; targeting of inflation. That's the root cause of the problem," he said during the Corporate Real Estate Conference organised by CoreNet Global in Bengaluru.

He said Rajan cannot be blamed because he was just performing his duty by using at least four to five instruments that were legislated in Parliament to fight inflation.

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