RBI not touching interest rates shows 'disconnect' with govt: BJP

In a sharp reaction to RBI's decision not to tinker with the key interest rates, the BJP today alleged this shows there is a "complete disconnect" and "lack of consultation" between the central bank and the government.

"Reserve Bank of India's decision today to leave interest rates unchanged demonstrates the complete disconnect between RBI and the government. RBI is autonomous and independent. BJP respects and understands this. But this doesn't imply absence of consultation," BJP spokesperson Nirmala Sitharaman said.

She said if consultations between the two had indeed taken place, then RBI's decision today only highlights the "disconnect".

The BJP also maintained today's order shows RBI and the Finance Minister are not on the same page.

Only a few days ago, the Finance Minister had said in Mumbai that he was confident RBI will adjust the monetary policy while the government adjusts the fiscal policy.

Though BJP maintained RBI has only taken a "professional call" on the issue, it pointed out "lacunaes" in the external factors, domestic developments and inflationary risks which were cited as the reasons for the present situation.

"The government's overemphasis on Eurozone (debt crisis) in general and on Greece in particular seems misplaced. The government is only seeking an alibi in referring to them and to divert the attention of the people from its failures," Sitharaman said.

She pointed out that even Prime Minister Manmohan Singh has expressed his concerns about Eurozone issues.