India replaces central bank governor in a surprise move
Al Jazeera
With India’s economic growth slowing down and inflation rising, the new governor will have challenges to deal with.
India has appointed career civil servant Sanjay Malhotra as its new central bank governor in a surprise move that leaves markets guessing about the future direction of monetary policy.
Financial markets had expected the Reserve Bank of India’s current Governor Shaktikanta Das to be handed a second extension when his term ends on Tuesday.
Malhotra, whose appointment was announced on Monday, is currently the revenue secretary for the Ministry of Finance. He has worked in financial services, power, taxation and information technology over a three-decade career.
His appointment as Reserve Bank of India (RBI) governor for a three-year term follows a decline in the country’s economic growth and an upturn in inflation.
“Not only are we dealing with a sharp growth-inflation trade-off and a changing global environment, but also a new set of monetary policymakers at the helm,” said Madhavi Arora, chief economist at Emkay Global.
