ECONOMY
No extension for Das, RBI governor retires, Sanjay Malhotra new RBI chief
- IBJ Bureau
- Dec 10, 2024
Career civil servant Sanjay Malhotra was appointed the Reserve Bank of India’s (RBI) new governor on Monday in a surprise move that leaves markets guessing about the future direction of monetary policy.
Financial markets had expected current Governor Shaktikanta Das to be handed a second extension when his term ended on Tuesday.
Mr Malhotra, currently revenue secretary in the Finance Ministry, has worked in financial services, power, taxation and information technology over a three-decade career.
His appointment as the RBI governor for a three-year term follows a decline in the country’s economic growth and an upturn in inflation.
“Not only are we dealing with a sharp growth-inflation trade off and a changing global environment but also a new set of monetary policymakers at the helm,” Madhavi Arora, the chief economist at Emkay Global, has said.
“A change in the governor followed by a likely change in the deputy governor in-charge of monetary policy before the February monetary policy review will mean a significant amount of uncertainty for the markets,” she added.
RBI Deputy Governor Michael Patra’s term is also set to conclude in mid-January, and the government is looking for a replacement.
Both the governor and the deputy are part of the six-member Monetary Policy Committee.
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