Raghuram Rajan, a former IMF chief economist who is credited to have predicted the 2008 global financial crisis, has been often hailed as the ‘rockstar central banker’ ever since becoming RBI Governor in September 2013 and for containing rupee volatility amid global market uncertainties.
Besides, he has also been often praised for containing inflation to a large extent and for forcing the banks to do a
“deep surgery” to clean up their books of bad loans. At the same time, he has also been criticised by some quarters for his hawkish monetary policy stance and refusing to heed to demands for lowering interest rates to boost the economy.
Rajan discontinuing from his second term as the Central Bank Governor has came across as a major shocker.
Here are two things Raguram Rajan said in an interview with the Economist magazine:
-“Reserve Bank will survive any Governor and it is important not to “personalise this office”.
-“RBI will survive any Governor, it is bigger than any Governor”.
While the decision has been accepted, speculations are now rife as to who will succeed Rajan at this paramount position. Names like Chief Economic Advisor Arvind Subramanian, World Bank Chief Economist Kaushik Basu, Revenue Secretary Shakatikanta Das, former Advisor to Finance Minister Parthsarathi Shome, BRICS Bank head and ICICI Bank veteran K V Kamath and Sebi Chairman U K Sinha etc coming up in the race.