RAJAN - HIS SECOND TERM CREATES SPECULATION

By Research Desk
about 8 years ago

 

By Ruma Dubey

There no debate here. Anyone with a sane mind knows that the decision is a no-brainer.

What is the suspense in Raghuram Rajan, the RBI Governor, getting an extension for another three years? Of course he will!

Till the comment of “one-eyed King” everyone was certain that the Governor, doing such a wonderful job in an otherwise chaotic time, there was no ambiguity that Rajan will get extension for a second term. With his ability to think ahead of time, come out with creative solutions and give the feeling that the country’s apex bank is in safe hands is a big deal.

Can the Modi Govt be so fascist that one misconstrued word and the person is axed? Don’t think so. The Govt has also time and again seen how effectively Rajan has been doing his job. And today, he saying that the Govt has not yet asked him to stay back is so right to say.

There is still time. His tenure ends in September and this speculation will run rife for some time now. Of course, it will build up to such a frenzy that finally the news of his extension will bring back the bulls on the floors. As one trader rightly said, this hype and speculation is being built up about a non-event so that a few can make money!

Foreign fund CLSA has already warned of dire consequences is Rajan’s tenure is not extended. They have already said that the risk is huge for the bond and currency markets. If nothing else, Modi is known to have an ear to ground, always ready to listen to what the FIIs want. Currently CLSA is the sole voice and if others join in, then Rajan’s extension is a certainty (which anyway is).

Rajan has stated that he loves teaching and if relieved as Governor, he would love to go back to academics and take up teaching. Now that too would be such an inspiring thing to do – imagine how his lectures could motivate so many young minds to achieve big like the way Rajan did.

Rajan is seen as a  leader of caliber. Suave, well spoken and young, he is like a messiah today. Apart from his academic achievements, his oratory skills, speaking with so much clarity and hope, with a vision for the future and all this with authority, has truly warmed the heart. For all of us, to hear any public figure speak so well is a rarity and Rajan just provides us with that succor, the feeling that we finally have at least one “Mr.Right” at the helm.

Rajan was greeted with a soaring stock market in 2013 and the rupee has been more or less steady. Yet, one has to know that our macro concerns remain. It feels good to know, in a contrived kind of way, to know that the Parliament and the politicians are finally working, getting Bills passed. And with Rajan at the helm, it would be good going….

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