Who will be next RBI Governor?
There is a major buzz at RBI. No, not about the recent moves or rate hikes. Come 4th September and the current RBI Governor, Duvvuri Subbarao’s tenure is set to end. Mr. Subbarao was first appointed RBI governor on Sept. 5, 2008, for a three-year term, which was extended by two years in 2011. Major expectations are abound about who would now takeover.
One name which is keeps coming up from various sources is that of Raghuram G. Rajan, a former chief economist for the International Monetary Fund who took over as India’s Chief Economic Advisor in September. But many in the know also say that he is too new to the Govt’s bureaucratic way of functioning and might not be the best choice. Another contender is Economic Affairs Secretary Arvind Mayaram. Interestingly, both Mr.Rajan as well as Mr.Mayaram work closely with Chidambaram.
One big buzz is that Subbarao himself might be asked to continue for one more year, keeping in mind the elections scheduled for next year and the Govt might want to keep the continuity in the policy actions intact. Handing over reins, many feel, at this juncture to someone else might not be a very good idea.
Coincidentally, Ben Bernanke is also set to retire in early 2014 as his tenure expires in January’14. Bernanke has made it amply loud and clear that he does not want an extension and it would be a challenge for the next Fed chief to start the tenure by easing QE.