India’s New Central Bank Governor Faces Growth And Inflation Challenges

India has appointed Sanjay Malhotra as the new governor of the Reserve Bank of India (RBI) as the country grapples with slowing economic growth and rising inflation.

Malhotra succeeds Shaktikanta Das, who completed an extended six-year term. I Photo: ReserveBankofIndia X

Malhotra succeeds Shaktikanta Das, who completed an extended six-year term, Ashok Sharma and Aniruddha Ghosal reported for the Associated Press (AP).

India’s economy grew at an annual rate of 5.4% last quarter—the slowest pace in nearly two years—while inflation surged to 6.2% in October, well above the RBI’s target of 4%. Rising vegetable prices have been a major contributor to inflation.

“Malhotra takes over at a time when there is a growing clamor for the RBI to ease policy rates in order to support growth.

His challenge will be to steer the central bank through a period of global and domestic uncertainty,” noted The Indian Express in an editorial.

In a statement, Malhotra emphasized the importance of stability and swift policy implementation, saying, “Stable policies are very important, whether it’s taxation, fiscal, or monetary policy.” His three-year term is expected to focus on balancing economic stability with growth.