Raghuram Rajan to replace D Subbarao as RBI governor

Comments 0
Rajan joined the government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago. Reuters Rajan joined the government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago. Reuters
SummaryDuvvuri Subbarao's eventful and hawkish tenure ends on Sept. 4 after five years.

Chief Economic Advisor Raghuram G Rajan, who as IMF economist had predicted the 2008 global crisis, was on Tuesday appointed the new RBI Governor.

Also read: Raghuram Rajan not in favour of sovereign bond to finance CAD

Rajan, 50, will succeed D Subbarao, who by his hawkish policy stood his ground on continuing with a tight monetary policy despite repeated entreaties from the government to ease interest rates to boost growth. Subbarao will demit office on September 4.

Also read: Message is reforms can succeed, says Rajan

"Prime Minister Manmohan Singh has approved the appointment of Dr. Raghuram Rajan as the Governor of Reserve Bank of India (RBI) for a term of three years, vice Dr. D. Subbarao upon completion of his (Dr. Subbarao's) tenure," an official release said.

Also read: Raghuram Rajan pitches for raising FDI in insurance to 49%

Rajan, a former IMF chief economist, was appointed as the Chief Economic Advisor in the Finance Ministry in August last year. His appointment as the 23rd central bank chief comes at a challenging time, when the economy is battling industrial slowdown, declining rupee, rising prices and all-time high current account deficit (CAD).

Also read: Raghuram Rajan suggests three-point agenda to boost economic growth

"These are challenging times for the Indian economy and the RBI and government will work together," Rajan said in a statement shortly after the announcement. "We don't have a magic wand to make the problems disappear. But absolutely we will deal with them."

Related: Don't get cowed down by govt: BJP to new RBI guv

Rajan noted that the RBI has a tradition of integrity, independence and professionalism.

Known for his frank views, Rajan was acclaimed for predicting the 2008 global financial crisis. In 2005, Rajan had delivered a lecture severely critical of the financial sector and argued that a financial disaster might be looming.

Rajan, who was honorary economic advisor to the Prime Minister earlier, is an alumni of IIM-Ahmedabad and IIT-Delhi. He had replaced Kaushik Basu as Chief Economic Advisor in the Finance Ministry last year.

He

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...