India is the latest country to see age-old tensions between governments and central banks flare up as the era of easy money draws to a close.
Prime Minister Narendra Modi’s government sent the central bank letters that cited a never-used power to overrule the Reserve Bank of India in a bid to push through measures that would unleash spending ahead of an election, Bloomberg reported Wednesday. That triggered a feisty speech from a central bank deputy in defense of independence, which brought the spat into the open.
As the rift looked set to deepen Wednesday, the government appeared to ease