Browse content similar to 09/08/2016. Check below for episodes and series from the same categories and more!
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Raghuram Rajan makes his swan song as head of the Indian Reserve Bank. | :00:00. | :00:20. | |
He's been dubbed the "rockstar" central banker for curbing India's | :00:21. | :00:23. | |
run-away inflation, but who will replace him? | :00:24. | :00:29. | |
And is high-street banking on its last legs? | :00:30. | :00:31. | |
We'll take a look at the technologies set | :00:32. | :00:33. | |
to revolutionise the way we move our money. | :00:34. | :00:42. | |
Also in the programme, we'll cross live to Asia to hear | :00:43. | :00:47. | |
about China's latest set of inflation figures. | :00:48. | :00:49. | |
We start in India where today Raghuram Rajan will make his last | :00:50. | :00:55. | |
policy decision as governor of the Indian central bank. | :00:56. | :00:58. | |
It's not often that policymakers are described as rock stars, | :00:59. | :01:00. | |
and Mr Rajan will be a very difficult act to follow. | :01:01. | :01:03. | |
When he took over as head of the central bank in 2013, | :01:04. | :01:06. | |
India was suffering from rampant double-digit inflation | :01:07. | :01:08. | |
and a currency that experienced sharp falls on a daily basis. | :01:09. | :01:10. | |
Mr Rajan brought India in line with modern economies by adopting | :01:11. | :01:13. | |
Since then prices are much more stable. | :01:14. | :01:25. | |
The latest data shows the Indian inflation rate | :01:26. | :01:27. | |
When Mr Rajan steps down in early September, his successor will be one | :01:28. | :01:38. | |
of the key policymakers responsible for the fastest growing major | :01:39. | :01:40. | |
Sameer Hashmi joins us from outside the Indian central bank. | :01:41. | :01:52. | |
Nice to see you. It is quite an important day. Let's start with any | :01:53. | :02:01. | |
decision they are likely to make it the central bank today. -- at. In | :02:02. | :02:11. | |
less than an hour's time we will find out what Rajan's last decision | :02:12. | :02:15. | |
is as far as monetary policy is concerned. Given what has happened | :02:16. | :02:18. | |
in the last couple of months, Rajan has been vocal that inflation is a | :02:19. | :02:24. | |
big worry for India, and he will not cut rates until the reserve bank of | :02:25. | :02:28. | |
India, the central bank, is sure it is in the comfort zone, as they | :02:29. | :02:33. | |
describe it. No surprises expected given it is Mr Rajan's last policy | :02:34. | :02:38. | |
and during his tenure his focus has been keeping inflation low. It looks | :02:39. | :02:43. | |
unlikely there will be rate cuts. So just explain, are we any clearer as | :02:44. | :02:48. | |
to why he is going? There was controversy about the fact that he | :02:49. | :02:51. | |
decided not to continue, and who might fill his shoes? Well, Mr | :02:52. | :03:00. | |
Rajan, his three-year term comes to an end in September and the rule | :03:01. | :03:04. | |
allows the Indian central bank governor to get a two-year | :03:05. | :03:08. | |
extension. The Indian government, headed by Narendra Modi, there were | :03:09. | :03:12. | |
voices in the government which were not in favour of Mr Rajan | :03:13. | :03:16. | |
continuing. Now, there are various reasons for that, some are | :03:17. | :03:19. | |
political, some feel that he was not doing a good enough job, some | :03:20. | :03:24. | |
thought he kept interest rates too high. One of the key reasons or | :03:25. | :03:29. | |
perceptions here is Mr Rajan is a very candid intellectual who does | :03:30. | :03:34. | |
not shy away from speaking his mind. He has criticised many policies | :03:35. | :03:37. | |
initiated by Narendra Modi's government and many think that is | :03:38. | :03:43. | |
what went against him because the government does not want a central | :03:44. | :03:48. | |
bank governor who speaks his mind, criticise decisions and even issues | :03:49. | :03:51. | |
that doesn't fall in the domain of the Indian central bank. That is one | :03:52. | :03:56. | |
key reason why the government is not keen to give him an extension and | :03:57. | :03:59. | |
that is why Mr Rajan decided to quit. As far as York question, that | :04:00. | :04:04. | |
is the million dollar question -- your question. The government is | :04:05. | :04:08. | |
expected to announce it in the next couple of days. Some of the leading | :04:09. | :04:13. | |
contenders include the former chief economist of the International | :04:14. | :04:18. | |
Monetary Fund, there is also the chief economic adviser to India. The | :04:19. | :04:24. | |
thinking is the government wants to replace Mr Rajan with the person who | :04:25. | :04:28. | |
has global credentials so that it sends out the right message to the | :04:29. | :04:32. | |
investors and the business community at large. Super. We will watch with | :04:33. | :04:36. | |
interest. For now, thank you. It's not just central banking | :04:37. | :04:38. | |
making the headlines. Today we receive the findings | :04:39. | :04:40. | |
of a two-year investigation into competition in the UK | :04:41. | :04:42. | |
commercial and consumer banking The country's watchdog is expected | :04:43. | :04:44. | |
to highlight the role of technology in providing alternatives | :04:45. | :04:47. | |
to traditional high street banks. Mondo Bank is a smartphone based | :04:48. | :04:49. | |
current account provider. The company is set to receive | :04:50. | :04:51. | |
its banking license later this year. With me is Paul Rippon, | :04:52. | :04:54. | |
the company's deputy Chief Good morning, Paul. I would imagine | :04:55. | :05:11. | |
this report coming out today is music to your ears, the fact they | :05:12. | :05:15. | |
are likely to say that the main players on the high-street have to | :05:16. | :05:18. | |
do more to increase their technology. Yes, the report out | :05:19. | :05:22. | |
later today I am sure will give the big banks are big kick and I think | :05:23. | :05:27. | |
that is very appropriate indeed. Yes, you are right. It is all about | :05:28. | :05:32. | |
messages of transparency and also it is about these things, you know, | :05:33. | :05:36. | |
smart phones. Three out of four of us are using them every day and it | :05:37. | :05:40. | |
is about time banking took advantage of the fantastic power in these | :05:41. | :05:44. | |
things. You have worked in banking for many years, worked for quite a | :05:45. | :05:48. | |
couple of high street players and building societies. It is funny, | :05:49. | :05:52. | |
because the smart device in Africa or India is the way to do banking, | :05:53. | :05:56. | |
when many don't have access to a high-street bank. It is in all | :05:57. | :05:59. | |
developed economies like the UK where we are far behind. You think | :06:00. | :06:06. | |
so but already there is change. At Mondo Bank we're already seeing | :06:07. | :06:08. | |
people with their fingers. Instead of with their feet. We have got | :06:09. | :06:14. | |
about 200,000 people already that have said they want to hear and to | :06:15. | :06:19. | |
know more about it. It is very exciting. I think change is | :06:20. | :06:23. | |
happening already. Change is happening for few but not for the | :06:24. | :06:28. | |
vast majority of people who use banks in the UK, and this report is | :06:29. | :06:31. | |
basically going to criticise the main players in the industry to say | :06:32. | :06:35. | |
they are not doing enough, not transparent enough, not telling us | :06:36. | :06:38. | |
enough about when we are being charged and what we are being | :06:39. | :06:43. | |
charged. Do you think high-street players will listen? I do believe | :06:44. | :06:47. | |
they will listen. How long they will take to do anything about it is | :06:48. | :06:54. | |
another thing entirely. About half of people, for example, use | :06:55. | :06:58. | |
overdrafts, and I believe that is where this report will particularly | :06:59. | :07:05. | |
focus on. Half people use an overdraft, I use mine, they can be | :07:06. | :07:11. | |
quite expensive, and this is about time that phones are used and banks | :07:12. | :07:14. | |
can make it much clearer. I think that is very good news but you are | :07:15. | :07:17. | |
right that it will take a long time. It might take a long time and for | :07:18. | :07:24. | |
those of us who are technophobes, using a phone to do my banking is | :07:25. | :07:31. | |
scary, I won't put all my money and decisions on a smart device. Well, | :07:32. | :07:35. | |
you know what, that is what these... They are incredibly powerful, and | :07:36. | :07:40. | |
that is the job, so companies like Mondo, we are trying to make the | :07:41. | :07:43. | |
experience magical, so you shouldn't need to do the hard work. That is | :07:44. | :07:47. | |
one of the problems with banking at the moment. You have to do all the | :07:48. | :07:51. | |
hard work. So let's make it feel like magic. And why shouldn't it be? | :07:52. | :07:56. | |
Banking is magic, that is the first time I have heard that on this | :07:57. | :07:59. | |
programme. Thanks very much for coming on. Let's move on. | :08:00. | :08:02. | |
In the last few hours, we've received the latest inflation | :08:03. | :08:05. | |
Lovely to see you. What's it like, good, bad or other? Nothing, it | :08:06. | :08:17. | |
wasn't really that exciting. It goes to show that the cost of living in | :08:18. | :08:24. | |
China rose by 1.8% in July from year ago levels because of rising | :08:25. | :08:29. | |
vegetable prices in some areas. They were focusing on the producer price | :08:30. | :08:32. | |
index, measuring cost of goods at factory gate, which fell 17% year on | :08:33. | :08:38. | |
year last month and Chinese PDI has been negative for more than four | :08:39. | :08:42. | |
years. Narrowing declines over the last couple of months have fuelled | :08:43. | :08:45. | |
hopes the economy could be reaching the bottom of a painful slowdown and | :08:46. | :08:49. | |
analysts has said the improvement in the PPI should benefit the corporate | :08:50. | :08:53. | |
sector's profitability but it will also mainly help state-owned | :08:54. | :08:57. | |
enterprises which dominate heavy industry. Well, this twin | :08:58. | :09:01. | |
development coming out today, Sally, comes out of trade figures on | :09:02. | :09:04. | |
Monday, which revealed exporter fallen nearly 4.5%, suggesting world | :09:05. | :09:11. | |
demand is weakening, while the 12.5% tumble in imports is a reminder that | :09:12. | :09:16. | |
China's economy is indeed slowing down. And this highlights that the | :09:17. | :09:23. | |
strategy to improve the -- domestic consumption has failed to offset the | :09:24. | :09:28. | |
marked slowdown in the mainland's traditional economic driver, so | :09:29. | :09:32. | |
going forward still the major challenge of growth for the Chinese | :09:33. | :09:34. | |
economy. All right, thank you so much. Let's quickly look at markets, | :09:35. | :09:40. | |
so you have a sense of how it is going. Four days of gains for Japan. | :09:41. | :09:44. | |
That is not right across the board. Oil is just down below $45 a barrel. | :09:45. | :09:53. | |
I will see you very soon. We will talk you through the papers very | :09:54. | :09:55. | |
soon. Say -- stay with us. Sally will be joining the very | :09:56. | :10:09. | |
shortly to have a look at the papers around the world but first I want to | :10:10. | :10:12. | |
bring you some news that has come from the housing charity, | :10:13. | :10:14. |