Economics
Patel’s Big Day Out Signals Abrupt Shift From Rajan’s Era
- RBI cites easing inflation, Patel notes uncertain U.S. vote
- Rajan had stared down government officials urging rate cuts
Urjit Patel, governor of the Reserve Bank of India, arrives at a news conference in Mumbai, on Oct. 4, 2016.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
It was meant to be independence day for India’s central bank. It might instead be viewed as mission accomplished for Prime Minister Narendra Modi’s government.
With a new governor at the helm of a newly-minted Monetary Policy Committee, the bank had the opportunity Tuesday to buttress the autonomy over interest-rate decisions that former leader Raghuram Rajan fought for. With the economy growing in excess of 7 percent, most economists predicted no change in the benchmark.