RBI governor supports independence of central bank

ET BureauLast Updated: Jul 26, 2025, 08:02:00 AM IST

Synopsis

Governor Malhotra praised US Fed Chair Jerome Powell's efforts to uphold the central bank's independence amidst political pressure. Malhotra highlighted Powell's commitment to this principle, noting the widespread support he received from global finance leaders at a recent international gathering. This endorsement underscores the importance of central bank autonomy in maintaining economic stability.

Governor Malhotra on Friday said that US Fed Chair Jerome Powell had done a commendable job in maintaining the independence of the central bank.

"I think he's doing a very good job. Maintaining the independence of the central bank is very important," Malhotra said.

His comments come amid US President Donald Trump's repeated criticism of Powell over holding the policy rates.

Malhotra said that he was present at a gathering of finance ministers and central bankers of top 30-40 countries a couple of months ago in the US.

"J Powell was also there. He spoke about what he was doing and about the central bank's independence. He was the only one who got a roaring applause," Malhotra said.

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