THE SENSATION OF NEW RBI GOVERNOR NEWS
- Even if the role of RBI governor would lessen with the formation of the monetary policy committee, every stakeholders out in the market would be keen to assess his plans on two these two key aspects - inflation expectation and better credit delivery.
- "One would look for continuity from the new governor. We will be keen to see how Urjit Patel manages inflation expectation," said Partha Ray, professor of Economics at Indian Institute of Management in Kolkata.
"It is important that RBI and the government speak the same tone. The differences, if any, should be kept behind the curtains and it would be interesting to see how the new governor fits in this role," Ray said.
The market would expect firmness in liquidity management so that lenders have enough ammunition when credit demand picks up with better economic outlook.
"He is the architect of inflation targeting approach. Investors don't want any change in policy direction," said Devendra Kumar Pant, chief economist with Indian Ratings & Research. He need to ensure that fallout of benign global environment does not impact India.