Change of guard at Mint Road: old dilemma, new hope

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: he could not - or did not - achieve some expected milestones. On whether he could have developed other financial markets like interest rate futures, the outgoing governor replied: “Certainly it is possible. But with an inadequate, imperfect spot market, how far will an interest rate futures market help?”

If things have changed swiftly in the last five years when Reddy took charge of the apex bank as governor, there would doubtless be further twists and turns in the next three years, as the financial markets get more dynamic and challenging, testing RBI to the hilt.

Dwelling on his dilemmas, Reddy said: “We constantly question ourselves and are able to have course corrections. There are dilemmas. GDP has grown 50% in five years. There would be very few cases. Apart from China, I can't think of any. This is a different dilemma from Jalan saab's dilemma, which is a different dilemma from Dr Rangarajan’s.”

Surely, with expectations running high, Subbarao has many challenging tasks ahead. Or, as Reddy prefers to put in a lighter vein: “Every governor seems to be able to manufacture his own challenges.”