ST GALLEN Switzerland (Reuters) - Reserve Bank of India (RBI) Governor Raghuram Rajan asserted his independence from the government on Friday, in a defiant response to criticisms of the central bank's hawkish stance on combating inflation.
"The key question is what kind of equation do you have with the government? I determine monetary policy, I say what it is," Rajan said at a conference in St. Gallen in eastern Switzerland.
"The government can fire me, but the government does not set monetary policy."
The RBI's governor and his deputies are appointed by the government - but they generally enjoy latitude in policymaking. However Rajan's focus on inflation has not been popular with the ruling Congress party.
(Reporting by Silke Koltrowitz; Writing by Himank Sharma; Editing by Robin Pomeroy)