Urjit Patel to have Rajan-like hawkish stance on inflation

 

The appointment of Urjit Patel is seen by many as continuation of outgoing governor Raghuram Rajan's unfinished agenda at the Reserve Bank of India said a report in The Economic Times.

 

 

Patel who is currently the deputy governor in-charge of the monetary policy department has been instrumental in India's switch towards inflating targeting and CPI as the new inflation benchmark.

 

 

Experts believe that Patel’s appointment can bring continuity to monetary policy in the country. He was Rajan’s deputy when Rajan had repeated face-offs with the political establishment for ignoring calls to cut interest rates. In a surprise announcement, Rajan told the government in June that he will return to teaching.

 

Patel headed a committee that introduced landmark changes including a switch to inflation-targeting and adopting consumer prices as the new benchmark instead of wholesale prices. The changes he helped drive are considered to be among the most significant monetary policy reforms since India opened up its economy in 1991.

 

 Reports say that, prior to his appointment as the deputy governor at the RBI in January 2013, Patel was advisor (energy & infrastructure), The Boston Consulting Group. He is a PhD (economics) from Yale University (1990) and MPhil from Oxford (1986). He has been a non-resident Senior Fellow, The Brookings Institution since 2009.

 

 

Between 1990 and 1995, Patel was with the International Monetary Fund (IMF), where he worked on the US, India, Bahamas and Myanmar desks.

 

 

During 1996-97 he was on deputation from the IMF to the RBI and provided advice on development of the debt market, banking sector reforms, pension fund reforms, real exchange rate targeting and evolution of the foreign exchange market.

 

Patel has also served the government in various positions during the NDA-I regime. During 1998-2001, he served as a consultant to the ministry of finance, department of economic affairs, New Delhi.

 

Patel has also served the present government in various positions during the NDA-I regime. During 1998-2001, he served as a consultant to the ministry of finance, department of economic affairs, New Delhi.

 

Patel will assume office as the 24th RBI governor for three years on September 5, a day after Rajan’s term ends. As India’s top banker, Patel’s primary duty will be to keep prices stable and ensure credit flow to companies and individuals. He will lead a team of about 17,000 and draw a salary of about Rs 200,000 per month besides allowances and perks.

 

Patel, 52, is presently one of the four deputy governors at the RBI. First appointed on 11 January 2013 as a deputy governor to replace Subir Gokarn, he was reappointed in January 2016 for another three years.