https://www.taxtmi.com/news?id=20680 Central bank independence shields monetary and financial stability functions from short-term political pressures by separating decision horizons: governments face electoral short-termism while central banks take medium-to-long-term views. Undermining independence-via politicised appointments, legislative attrition of powers, discretionary interference, or parallel regulatory bodies-creates fiscal and financial tail risks and invites market reprisals. Markets discipline both governments and central banks by repricing sovereign risk when credibility erodes. The Reserve Bank of India has strengthened independence through a rule-based Monetary Policy Committee, limits on deficit monetisation, and exchange-rate management, though challenges remain in public sector bank supervision, balance-sheet protections, and regulatory scope. en-us Mon, 29 Oct 2018 12:42:32 +0530 Mon, 29 Oct 2018 12:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=20680 Central bank independence shields monetary and financial stability functions from short-term political pressures by separating decision horizons: governments face electoral short-termism while central banks take medium-to-long-term views. Undermining independence-via politicised appointments, legislative attrition of powers, discretionary interference, or parallel regulatory bodies-creates fiscal and financial tail risks and invites market reprisals. Markets discipline both governments and central banks by repricing sovereign risk when credibility erodes. The Reserve Bank of India has strengthened independence through a rule-based Monetary Policy Committee, limits on deficit monetisation, and exchange-rate management, though challenges remain in public sector bank supervision, balance-sheet protections, and regulatory scope. News - Mon, 29 Oct 2018 12:42:32 +0530 https://www.taxtmi.com/news?id=20680