India's departing central banker offers a fresh warning

Mumbai

THREE years before the 2008 global financial crisis, an Indian economist named Raghuram Rajan presciently warned a sceptical audience of top economic thinkers that excessive risk threatened the entire global financial system.

As Mr Rajan stepped down on Sunday as India's top central banker, following intense criticism at home, he offered a new warning: low interest rates globally could distort markets and would be difficult to abandon.