Chidambaram will one day say 'thank God RBI exists': Subbarao

Mumbai: Bringing their differences into open, outgoing RBI Governor D Subbarao today took a dig at Finance Minister P Chidambaram for his comment once that he would “walk alone” to ensure growth in the face of tight money policy of the central bank.

A week before he leaves office, Subbarao referred to a lot of media coverage on policy differences between the government and the Reserve Bank and the issue of autonomy and accountability.“Gerard Schroeder, the former German Chancellor, once said, ‘I am often frustrated by the Bundesbank. But thank God, it exists.’

[caption id=“attachment_1070857” align=“alignleft” width=“380”] P Chidambaram in this file photo. PTI[/caption]

“I do hope Finance Minister Chidambaram will one day say, ‘I am often frustrated by the Reserve Bank, so frustrated that I want to go for a walk, even if I have to walk alone. But thank God, the Reserve Bank exists’,” Subbarao said in his last public lecture as RBI Governor.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

He was obviously referring to a statement of Chidambarm in October last year that “If the government has to walk alone to face the challenge of growth then, ‘we will walk alone’.”

Chidambaram was then upset over RBI’s decision to keep the interest rates high despite government unveiling a five-year fiscal consolidation road map.

PTI