Key central banks' rate game a danger to everyone else

CENTRAL bankers have been having such fun playing games of ZIRP (zero interest rate policy) and NIRP (negative interest rate policy) in which there appear to be no rules other than to outsmart the opponent that they seem to resent being asked, especially by one of their own, to play with some sense of team spirit.

To "zirp" another player, a central bank lowers interest rates to zero, thus scoring zero interest rate policy status, and the world's leading central banks have been zirping enthusiastically for some time. To "nirp" a player, you go one better and introduce negative rates.

Now, it seems that Reserve Bank of India (RBI) governor Raghuram Rajan is intent on spoiling the fun by calling on the monetary moguls of the world (as he did in New Delhi a week ago) to adopt some sort of rule book with regard to their moves in the new Great Game of monetary easing.