New Guv Vows To Uphold RBI Legacy

Mumbai: New RBI Governor Sanjay Malhotra on Wednesday said the central bank will maintain continuity and stability in policy matters, but emphasised on the need to remain ‘alert and agile’ in the wake of the current global economic and political environment. Earlier in the day, he took charge as the 26th Governor of the Reserve Bank, replacing Shaktikanta Das who demitted office after six years.

“As we have to be conscious of the fact that we do maintain continuity and stability, we cannot be stuck to it, and we have to be alert and agile to meet challenges,” Malhotra said in his first interaction as Governor with media. In his brief statement, Malhotra also stressed that the central bank will continue to interact with all segments, including financial regulators, state governments and the Centre, to continue the Reserve Bank’s legacy.

Analysts are expecting the RBI to cut interest rates at the forthcoming policy review in February, and are of the opinion that Malhotra’s appointment cements the possibility.

“We do not have monopoly of all knowledge,” he said, while stressing on the importance of wide consultations with other stakholders. The former revenue secretary emphasised that RBI will extensively use technology to further promote financial inclusion.

Under Das, the Reserve Bank maintained a status quo on key rates for 11 consecutive meetings over nearly two years as it prioritised to tame inflation. It also diagnosed the slow growth as a result of high inflation.