INSUBCONTINENT EXCLUSIVE:
4, just days before the MPC is expected to meet and make its rate decision on Oct
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A delay in the appointments risks a repeat of 2020, when the RBI had to postpone its rate
Looming in the background is also uncertainty over who will lead the RBI from next year, with the contracts of both Governor Shaktikanta Das
concluded and announced well ahead avoiding last minute delays
officials, comprising the governor, the deputy governor in charge of the monetary policy, and another official, typically the executive
9 and Patra finishes his term on Jan
Neither the government nor the RBI have signaled if they will remain in their posts.
MPC Doves
The external MPC members who end their
terms next month have been more dovish than their RBI counterparts in recent rate meetings
Both Goyal and Varma voted for rate cuts in the past two meetings
India should follow other central banks in having a more transparent process in selecting key candidates
At the Bank of England, for example, four external MPC members are appointed through an open and public process where the applicants are
teaches economics at Ahmedabad University
to emails seeking further information.
Appointments of key RBI officials are typically made ahead of time, aside from the 2020 debacle,
leadership of the RBI can bring sweeping monetary policy shifts
Urjit Patel, who was RBI governor before Das took over in December 2018, was a policy hawk, rejecting calls to cut interest rates even when
inflation tumbled to a record low of 1.46 per cent in June 2017
global central banks pivot and the economy shows signs of moderating
themselves with the issues to call for a rate cut
