India risks a high stakes fight with its central bank

New Delhi (CNN Business)Tensions between the Indian government and its central bank have spilled out into the open, raising fears that the country’s fast-growing economy could be blown off course.

The Indian government said Wednesday that it would respect the autonomy of the Reserve Bank of India (RBI) after local media reported that the bank’s governor, Urjit Patel, could resign in protest over political meddling.
“The autonomy for the central bank … is an essential and accepted governance requirement,” India’s finance ministry said in a statement. “Governments in India have nurtured and respected this.”

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