Sanjay Malhotra named India’s new central bank chief

India has appointed Sanjay Malhotra, a seasoned bureaucrat, as the new governor of the Reserve Bank of India (RBI), ending weeks of speculation about who would lead monetary policy in the world’s fastest-growing major economy.

Currently serving as the revenue secretary in the Ministry of Finance, Malhotra will assume his new role at the RBI on December 11 for a three-year term, according to a government statement released on Monday. With over 30 years of experience in public policy, Malhotra succeeds Shaktikanta Das, who has been at the helm of the central bank since 2018.

Malhotra’s appointment comes at a critical juncture for the RBI, as it grapples with mounting economic pressures. India’s GDP growth slowed to a seven-quarter low of 5.4 per cent in the July-September period, intensifying calls for monetary easing. While the central bank has maintained unchanged interest rates for nearly two years under Das due to inflation risks, demands for rate cuts are growing.

Key voices within the Narendra Modi government, including Finance Minister Nirmala Sitharaman and Trade Minister Piyush Goyal, have recently argued that high borrowing costs are stifling economic momentum. Malhotra will now face the delicate task of balancing inflation control with the need to stimulate growth in an increasingly complex economic landscape.

Attribution: Bloomberg