<p><em>By Anirban Nag</em></p>.<p>Hopes of a trade deal between the US and China and a series of interest rate cuts by the Federal Reserve are making the world a much better place in the short term, former Reserve Bank of India Governor Raghuram Rajan said.</p>.<p>“The Fed has been very sensitive to a lot of concerns about growth,” Rajan said in an interview to Bloomberg TV’s Haslinda Amin in Singapore. “It has done a series of insurance cuts. That seems to have reassured markets even while they were waiting to see some resolution to the trade imbroglio.”</p>.<p>The Fed last month cut interest rates for a third time this year, citing a combination of trade-policy uncertainty, slowing global growth and below-target inflation. The U.S. and China have been trying to negotiate a limited trade deal, but it may not be clinched until December over indecision on where to sign the deal.</p>.<p>Rajan said there’s some progress on the trade deal, but it will not be a permanent solution and won’t be something that many people want to see.</p>.<p>In some sense “we are in a much better place” than where we were toward the end of last year, said Rajan.</p>.<p><strong>Here are some more points from the interview:</strong></p>.<p>On Europe, Rajan said the European Central Bank has very little room to ease policy further, and it is now for the politicians to revive growth and create more jobs<br />Boosting government spending to support growth comes with its own risks given high debt in some countries, Rajan said</p>.<p>On Brexit, he said that an unprepared exit by the UK from the European Union will not be good</p>.<p>On speculation that he is a potential successor to Mark Carney as the head of the Bank of England, Rajan said that it was a very difficult job, and central banking jobs were becoming increasingly political. He said the BOE job requires a candidate who understands the domestic political situation</p>
<p><em>By Anirban Nag</em></p>.<p>Hopes of a trade deal between the US and China and a series of interest rate cuts by the Federal Reserve are making the world a much better place in the short term, former Reserve Bank of India Governor Raghuram Rajan said.</p>.<p>“The Fed has been very sensitive to a lot of concerns about growth,” Rajan said in an interview to Bloomberg TV’s Haslinda Amin in Singapore. “It has done a series of insurance cuts. That seems to have reassured markets even while they were waiting to see some resolution to the trade imbroglio.”</p>.<p>The Fed last month cut interest rates for a third time this year, citing a combination of trade-policy uncertainty, slowing global growth and below-target inflation. The U.S. and China have been trying to negotiate a limited trade deal, but it may not be clinched until December over indecision on where to sign the deal.</p>.<p>Rajan said there’s some progress on the trade deal, but it will not be a permanent solution and won’t be something that many people want to see.</p>.<p>In some sense “we are in a much better place” than where we were toward the end of last year, said Rajan.</p>.<p><strong>Here are some more points from the interview:</strong></p>.<p>On Europe, Rajan said the European Central Bank has very little room to ease policy further, and it is now for the politicians to revive growth and create more jobs<br />Boosting government spending to support growth comes with its own risks given high debt in some countries, Rajan said</p>.<p>On Brexit, he said that an unprepared exit by the UK from the European Union will not be good</p>.<p>On speculation that he is a potential successor to Mark Carney as the head of the Bank of England, Rajan said that it was a very difficult job, and central banking jobs were becoming increasingly political. He said the BOE job requires a candidate who understands the domestic political situation</p>