Urjit Patel to Be Next Central Bank Chief in India The Indian government on Saturday named Urjit R. Patel the new governor of t...
Urjit Patel to Be Next Central Bank Chief in India
Mr. Patel, 52, is now one of four deputy governors of the Reserve Bank, running its monetary policy department. He was reappointed in January for a three-year term. His appointment ends weeks of speculation about a successor to Mr. Rajan, who announced unexpectedly in June that he planned to return to academia.
The chief of the Reserve Bank of India is typically chosen by the prime minister in consultation with the finance ministry, making Mr. Patel the first governor to be chosen by the right-wing prime minister, Narendra Modi.
While many investors were disappointed in Mr. Rajan’s decision to step down, some hope the new appointee will work even harder to cut interest rates.
India’s economy expanded 7.9 percent in the fourth quarter of 2015-16, the fastest of any large economy, while inflation has fallen from double-digit levels to around 6 percent on Mr. Rajan’s watch.
But even though interest rates are at their lowest level since 2011, there have been tensions with the ruling Bharatiya Janata Party, which has been pushing for deeper cuts, saying these would increase growth further.
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