Out of step

That relations were strained between former Finance Minister Pranab Mukherjee and Reserve Bank of India (RBI) Governor D Subbarao was an open secret. The wide communication gap was evident even as late as two days before Mukherjee stepped down as finance minister to prepare for his Presidential campaign. On Saturday June 23, Mukherjee told reporters in Kolkata that the central bank would take steps to strengthen the rupee. This statement ran as headlines in most dailies, but it turned out to be news for RBI as well. What steps? Who had discussed them with the finance minister? No one among the top brass had a clue. To save face, some half-measures were hastily cobbled together but to little effect. The rupee, which had started strengthening ahead of an RBI announcement, quickly slumped back.