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Central bank freedom: Where does RBI stand?

Mint Hyderabad

|

August 05, 2025

The very public friction between US President Donald Trump and Federal Reserve Chair Jerome Powell has once again thrust central bank independence into the spotlight. The underlying question is both simple and consequential: should elected leaders have a say in how central banks set interest rates?

- Deepa Vasudevan

This tension isn't new. Trump repeatedly criticised the Fed's rate hikes during his earlier term. European leaders were unsettled by the European Central Bank's aggressive tightening in 2022. And back in 2018, India witnessed its own showdown between the Reserve Bank of India (RBI) and the finance ministry. The consensus among economists is clear: independent central banks are critical to maintaining macroeconomic stability.

To measure the independence of central banks across countries and time, researchers have created an index based on some core criteria. Each criterion is assigned a score, and then these scores are used to arrive at an index value, ranging from 0 to 1, with 1 representing the highest level of independence.

Common central bank parameters assessed in these indices include rules of appointment of the governor and the monetary policy committee, freedom to formulate monetary policy, financial independence, and reporting and disclosure norms. Two recent indices assign India's RBI scores of 0.36 and 0.59, indicating moderate independence.

RBI'S REPORT CARD

FLERE HISTORIER FRA Mint Hyderabad

Mint Hyderabad

Mint Hyderabad

SC allows Natco to sell generic of Roche drug until case ends

The Supreme Court on Friday rejected Swiss pharmaceutical giant F. Hoffmann-La Roche AG's (Roche) pleaseeking that Natco Pharma Ltd berestricted from selling the generic version of its lifesaving spinal muscular atrophy (SMA) drug, Risdiplam, in India until the conclusion of the case.

time to read

2 mins

October 18, 2025

Mint Hyderabad

Mint Hyderabad

An artist's neon ode to the labour of women

An influential figure on the global arts scene, Chila Kumari Burman focuses on inner resilience of women in South Asia

time to read

3 mins

October 18, 2025

Mint Hyderabad

Mint Hyderabad

Can we ever give ourselves the gift of time?

We've got apps, gadgets, hacks and services to get work done faster and better. Yet we remain busier than ever

time to read

5 mins

October 18, 2025

Mint Hyderabad

RIL Q2: Profit surges 16% as all engines gain steam

All of its key businesses—O2C, telecom and retail—saw marginal improvements

time to read

1 mins

October 18, 2025

Mint Hyderabad

Hacker hostels fuel bunch of tech builders

Discord server for people with an interest in tech has now evolved into a hacker house across different countries, including Romania, Japan and France.

time to read

3 mins

October 18, 2025

Mint Hyderabad

Mint Hyderabad

JSW Steel upbeat on H2, eyes policy boost

projection of 23 analysts polled by Bloomberg.

time to read

1 mins

October 18, 2025

Mint Hyderabad

The auto industry is panicking about another potential chip shortage

year there were production stoppages resulting from China’s stranglehold on rare-earth magnets, a disruption in aluminum supplies after a fire and President Trump’s costly tariffs.

time to read

2 mins

October 18, 2025

Mint Hyderabad

Reliance Q2: Profit surges 16% as all three engines fire

fuel and other chemicals, benfitted from a sharp growth in fuel cracks—the difference between the price of crude oil and the fuel produced from it—during the quarter.

time to read

1 mins

October 18, 2025

Mint Hyderabad

Mint Hyderabad

HDFC Bank, ICICI Bank set for steady loan growth in Q2

India's two largest private sector lenders, HDFC Bank and ICICI Bank, are set to announce their September quarter results on Saturday. Brokerages expect both banks to report steady loan growth, though net interest margins (NIMs) are likely to remain under pressure amid faster loan repricing and rising deposit costs.

time to read

2 mins

October 18, 2025

Mint Hyderabad

Hindustan Zinc Q2 profit expands 14%

The ongoing silver rally helped Hindustan Zinc Ltd report a 14% year-on-year jump in its profit for the September quarter, offsetting a sharp dip in metal production.

time to read

1 min

October 18, 2025

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