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India appoints Sanjay Malhotra as new governor of country’s Reserve Bank
(MENAFN) India has appointed Sanjay Malhotra, the current Revenue Secretary, as the new governor of the Reserve Bank of India (RBI) for a three-year term, starting Wednesday. Malhotra brings over 30 years of experience in public policy and will succeed Shaktikanta Das, who has led the RBI since 2018. His appointment marks a significant shift in leadership at the central bank as he takes charge of the country’s monetary policy at a challenging time.
Malhotra assumes the governor’s role at a critical juncture for India’s economy, which is facing several economic pressures. The country’s economic growth slowed to 5.4 percent in the third quarter of this year, a notable decrease from the 6.7 percent growth seen in the previous quarter. At the same time, consumer inflation surged to 6.21 percent in October, its highest in 14 months, exceeding the RBI’s target of 4 percent. These developments present Malhotra with significant challenges as he steps into his new role.
Last week, the RBI maintained its benchmark interest rate at 6.5 percent for the 11th consecutive meeting, signaling a neutral policy stance amid slowing economic growth. This decision has sparked discussions about the need for a recalibration of monetary policy, as the country faces inflationary pressures while trying to stimulate growth. Malhotra’s leadership will be key in navigating these complex economic dynamics.
Malhotra’s appointment comes at a time when calls are growing for adjustments to the RBI’s monetary policy framework to support economic growth while keeping inflation under control. As the new governor, Malhotra will have to balance these competing priorities carefully, all while ensuring the financial system remains stable and resilient in the face of these challenges.
His experience in public policy and fiscal management will be critical as he leads the RBI through a period of economic uncertainty. Malhotra’s leadership is expected to be pivotal in guiding India through these difficult times, ensuring that the country remains on track to maintain its position as the world’s fastest-growing major economy.
Malhotra assumes the governor’s role at a critical juncture for India’s economy, which is facing several economic pressures. The country’s economic growth slowed to 5.4 percent in the third quarter of this year, a notable decrease from the 6.7 percent growth seen in the previous quarter. At the same time, consumer inflation surged to 6.21 percent in October, its highest in 14 months, exceeding the RBI’s target of 4 percent. These developments present Malhotra with significant challenges as he steps into his new role.
Last week, the RBI maintained its benchmark interest rate at 6.5 percent for the 11th consecutive meeting, signaling a neutral policy stance amid slowing economic growth. This decision has sparked discussions about the need for a recalibration of monetary policy, as the country faces inflationary pressures while trying to stimulate growth. Malhotra’s leadership will be key in navigating these complex economic dynamics.
Malhotra’s appointment comes at a time when calls are growing for adjustments to the RBI’s monetary policy framework to support economic growth while keeping inflation under control. As the new governor, Malhotra will have to balance these competing priorities carefully, all while ensuring the financial system remains stable and resilient in the face of these challenges.
His experience in public policy and fiscal management will be critical as he leads the RBI through a period of economic uncertainty. Malhotra’s leadership is expected to be pivotal in guiding India through these difficult times, ensuring that the country remains on track to maintain its position as the world’s fastest-growing major economy.
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