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August 23, 2016

Vivek Dehejia Speaks to BBC News on the Appointment of Urjit Patel as Governor of the Reserve Bank of India

Vivek Dehejia, Resident Senior Fellow at IDFC Institute is quoted in a BBC News article by Leisha Chi on the promotion of Deputy Governor Urjit Patel to Governor of the Reserve Bank of India (RBI). 

 

Chi uses the word 'continuity' to describe Mr Patel's appointment as "he is expected to maintain much of the policy status quo but with less rocking of the political boat..."

 

"...Most accounts of Mr Patel have described him as a well-respected but 'low-key' and 'solitary' figure. India's Economic Times newspaper headlined his (Mr Patel's) promotion as 'the silent revolution of an owl' and called him 'a man of few words'. The pun, of course, being that economic commentators like to label policymakers as either a 'hawk', who focuses on issues like clamping down on inflation, or a 'dove', who looks to create more jobs..."

 

"They're (Rajan and Patel) opposites in the media but very much in tune with policy..."

 

"...Urjit Patel is cut from the same policy cloth and represents continuity in that regard. To that degree, the markets will likely price out much further easing possibilities in the near term..."

 

Dehejia agrees with with this view and comments that Mr Patel's appointment sends out the right message:

 

"Patel will be a classical central banker who will speak only on issues within his remit. And that is what a central governor should be doing. The position of a central banker is to talk about monetary policy and he will hopefully not use that position as a bully pulpit."

 

Read the full article here.

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