India central bank governor could resign soon

Reserve Bank of India Governor Urjit Patel was claimed to be tired of the struggle with the government, thus provoking his reported resignation. (Reuters)
Updated 07 November 2018
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India central bank governor could resign soon

  • The Indian government and the central bank have been fighting for weeks over how much autonomy the RBI should have

NEW DELHI: Reserve Bank of India (RBI) Governor Urjit Patel could resign at the central bank’s next board meeting on November 19, online financial publication Moneylife reported on Wednesday, citing sources in touch with the governor.
The Indian government and the central bank have been fighting for weeks over how much autonomy the RBI should have as the administration of Prime Minister Narendra Modi seeks to reduce curbs on lending and to gain access to the RBI’s surplus reserves.
The rift worsened late last month when one of the bank’s deputy governors said in a speech that undermining central bank independence could be “potentially catastrophic”.
Moneylife’s report said if the feud escalates further, there is “a good chance” Patel will resign at the RBI’s next meeting, saying he was tired of the struggle with the government, and it was having a negative impact on his health.
The report did not cite the number of sources. The RBI did not immediately respond to a request for comment.
The story was written by veteran Indian financial journalist Sucheta Dalal who is well known for her investigative reporting. She is one of the founders of Moneylife.
Reuters reported on Tuesday that the government intends to keep pressing its demands even if it risks provoking a resignation by Patel, according to three sources familiar with the government’s thinking.


Dubai carrier Emirates reports 86% plunge in first-half profit

Updated 7 min 41 sec ago
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Dubai carrier Emirates reports 86% plunge in first-half profit

DUBAI: Emirates airline on Thursday reported an 86 percent fall in first-half profit, as higher fuel costs and unfavorable currency exchange rates eroded earnings.
Emirates, the world’s biggest long-haul airline, made 226 million dirhams ($62 million) in the six months to Sept. 30, compared to 1.7 billion a year earlier.
Revenue rose 10 percent to 48.9 billion dirhams.
Chief Commercial Officer Thierry Antinori warned on Tuesday earnings would be squeezed by higher fuel costs and a strong dollar. Concerns about the global economy and political instability had also weakened profit, he said.