New RBI Governor: 3 potential changes to track under Finance Ministry insider Sanjay Malhotra
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As yet another Finance Ministry insider and revenue secretary Sanjay Malhotra takes charge of the Reserve Bank of India (RBI) from Wednesday, market experts say the selection of two career bureaucrats as RBI Governor in a row indicates the government's comfort with having a bureaucrat rather than a technocrat at the central bank's helm. "In the past, when bureaucrats have joined the RBI, we have observed a greater alignment with the government’s way of thinking in the initial period, but over time this changes with more alignment seen with the RBI’s institutional thinking," Nomura's Sonal Varma said. Pointing out that a whole lot is known about Malhotra’s views on current economic issues, the brokerage firm said three potential changes could occur under the new RBI Governor. 1) Shift towards more accommodative monetary policy With the new RBI governor from the Finance Ministry and with fresh thinking at hand, a rate ...