Vivek Dehejia, Resident Senior Fellow at IDFC Institute is quoted in Amy Kazmin and David Keohane's Financial Times article on the appointment of Deputy Governor, Urjit Patel as the Governor of the Reserve Bank of India (RBI), who will succeed Governor Raghuram Rajan when he departs in September.
Kazmin and Keohane are of the view that "the appointment of Mr Patel, who holds a PhD in Economics from Yale University, as the Governor of the RBI will come as a relief to international investors, some of whom fretted that a more unorthodox thinker could be chosen to lead the institution..."
"Mr Patel, the architect of India's new inflation targeting monetary policy framework, is considered as hawkish on inflation as his predecessor, and will be seen as a safe pair of hands who will bring continuity to the RBI and its policies.
However, Mr Patel, who was appointed deputy governor in 2013, is also expected to be far more low-key than Mr Rajan, whose outspoken comments on topics ranging from wealthy tycoons treating state banks as their private kitties to the importance of tolerance and questioning orthodoxies irked powerful forces, including some in Prime Minister Narendra Modi’s administration."
Dehejia complements this standpoint:
"He (Mr Patel) will have a very different style and a style more suited to a conventional central banker. I do not see him using the position of RBI governor as a bully pulpit like his predecessor."
Read the full article here.