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Duvvuri Subbarao

Natalia George
Yahoo! India News
26 November 2012

When Duvvuri Subbarao took over as the RBI Governor in 2008 the global economy was in shambles and Subbarao kept a firm handle on the monetary policy. Three years hence, he continues to maintain his hawkish stance at the risk slowing down the economy.

Most banks in developed have kept interest rates near zero and have promised to leave rates unchanged until 2013. India’s interest rate, however, has been hiked constantly since 2008 in an effort to rein in inflation and currently stands at 8 percent.

Though Subbarao has earned more critics (like the Finance Ministry) for his bold decisions, he still has many that admire him for his independence, asserting the Reserve Bank’s autonomy. He has remained undeterred by industry and political pressure to lower rates.

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