Home' Trinidad and Tobago Guardian : June 21st 2016 Contents A15
Tuesday, June 21, 2016 www.guardian.co.tt Guardian
NEW DELHI---The governor of
India s central bank said he will not
seek a second term and will return
to academia when his term ends in
Raghuram Rajan s announcement
ends speculation over whether Prime
Minister Narendra Modi s government
will give him another three-year term
with India s economy growing at an
impressive 7.5 per cent. That made
India the world s fastest-growing major
economy, overtaking China s growth
in the January-March quarter.
Rajan was appointed the Reserve
Bank of India s governor by the pre-
vious Congress party government
three years ago. Some leaders of
Modi s Hindu nationalist party
recently criticised him for adopting
a hard line against inflation despite
pressure to cut interest rates to push
India s economic growth.
Subramanian Swamy, a lawmaker
from the ruling Bharatiya Janata Party,
has attacked Rajan for his hawkish
stance on interest rates, and ques-
tioned whether Rajan was "mentally,
TOKYO---Mitsubishi Motors is giving 100,000
yen (US$960) to each Japanese owner of its
car as a compensation for inflated mileage and
extra gas costs.
The Japanese automaker said it will take a 50
billion yen (US$913 million) charge to cover
mileage-rigging expenses, including for the eK
minicar models sold in Japan since 2013, and
also under the Nissan label, as well as 30,000
yen (US$290) compensation each for some other
Minicars are tiny models popular in Japan,
and generally promise great mileage.
Tokyo-based Mitsubishi Motors Corp acknowl-
edged in recent months that it was systematically
cheating on mileage tests on a variety of models
for decades. It has denied any falsified mileage
data for overseas models.
Last month, Nissan Motor Co. took a 34 per
cent stake in Mitsubishi, promising to help a
turnaround. Under a special agreement, Mit-
subishi had supplied the models to Nissan, which
does not make its own minicars. Nissan s own
tests had uncovered the mileage cheating.
Mitsubishi Motors President Tetsuro Aikawa
said last month he will step down to take respon-
sibility for the mileage scandal, although he
denied personal involvement.
Mitsubishi faces a major challenge in regaining
consumer trust. In the early 2000s, Mitsubishi
disclosed a massive cover-up of defects such as
failing brakes, faulty clutches and fuel tanks
prone to falling off, dating back to the 1970s.
The automaker has repeatedly promised to fix
its ethical standards among its ranks.
The Japanese government instructed all
automakers to check on mileage tests after the
Mitsubishi scandal surfaced.
Suzuki Motor Corp., which specialises in mini-
cars, has apologised for some improper road tests
for mileage. But Suzuki said mileage wasn t false,
and its dubious tests did not affect models sold
offers cash for
India's central bank governor to step down
fully Indian as he holds a US green card," according
to the Press Trust of India news agency.
Since becoming head of the central bank, Rajan
has been on leave as a professor of finance at the
University of Chicago.
In a message to his bank staff, Rajan said that
when he took office, the Indian currency was
plunging daily, inflation was high and growth was
His agenda for action, including a new monetary
framework and raising of foreign exchange reserves,
helped halve inflation and allowed savers to earn
positive real interest rates on deposits after a long
time, he said. "We have also been able to cut inter-
est rates by 150 basis points after raising them
initially," he added.
India s inflation rate averaged 7.7 per cent from
2012 through 2015, reaching an all-time high of
11.16 per cent in 2013 and a record-low 3.69 per
cent in July last year, according to government
Rajan, who was chief economist at the Inter-
national Monetary Fund from 2003 to 2007, said
in his message, "I am an academic and I have
always made it clear that my ultimate home is in
the realm of ideas." He also said he "will, of course,
always be available to serve my country when
Reserve Bank of India (RBI) Governor Raghuram Rajan.
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