India’s former Reserve Bank governor Raghuram Rajan is being looked at as the top contender for Bank of England governor’s post. And the reason for his name has popped up as someone who might replace Mark Carney is his experience as the RBI governor and his understanding of international economics. An article by Financial Times compiled a list of potential candidates for the top post of UK’s central bank, in which Raghuram Rajan was among five economists and regulators.
“Impeccable international economics and central banking experience. Significant achievements at the Reserve Bank of India,” Financial Times wrote. However, it also added that so far Raghuram Rajan has not given any indication that he would take the job if offered. Minouche Shafik, director of the London School of Economics; Andy Haldane, BoE chief economist; Shriti Vadera, chair of Santander UK; Ben Broadbent, deputy governor for monetary policy; Andrew Bailey, chief executive of the Financial Conduct Authority are other contenders for the post.
Raghuram Rajan, who is quite popular in India even two years after leaving RBI’s office, rose to fame when he rightly predicted the United States financial crisis. He was then the Chief Economist and Director of Research of International Monetary Fund (IMF). Now, a professor at Chicago University, Raghuram Rajan was appointed as RBI’s chief from September 2013 to September 2016.
During his tenure, Raghuram Rajan identified banking crisis and promised to resolve it. The RBI, under him, adopted CPI Inflation as a key indicator of inflation as accepted globally. Raghuram Rajan was named Time Magazines ‘100 Most Influential People in the World’ in 2016 and his book ‘Fault Lines: How Hidden Fractures Still Threaten the World Economy’ won the Financial Times/Goldman Sachs Business Book of the Year award in 2010.