India | Urjit Patel's naming as RBI governor to comfort markets as continuity seen
Reserve Bank of India (RBI) Deputy Governor Urjit Patel attends a news conference after the bi-monthly monetary policy review in Mumbai, India, February 2, 2016. REUTERS/Danish Siddiqui/File Photo
Reserve Bank of India (RBI) Deputy Governor Urjit Patel attends a news conference after the bi-monthly monetary policy review in Mumbai, India, February 2, 2016. REUTERS/Danish Siddiqui/File Photo

Urjit Patel’s naming as RBI governor to comfort markets as continuity seen

August 20, 2016 10:24 AM (UTC+8)

 

By Neha Dasgupta and Rafael Nam | NEW DELHI/MUMBAI 
India’s incoming central bank governor Urjit Patel will aggressively fight inflation and continue a policy of a stable rupee and cash injections into the financial system, investors said, offering a comforting degree of continuity to his predecessor’s policies.
Reserve Bank of India (RBI) Deputy Governor Urjit Patel attends a news conference after the bi-monthly monetary policy review in Mumbai
Reserve Bank of India (RBI) Deputy Governor Urjit Patel attends a news conference after the bi-monthly monetary policy review in Mumbai, India, February 2, 2016. REUTERS/Danish Siddiqui/File Photo

That could help overcome an expected initial negative reaction in bond markets on Monday, when the benchmark 10-year bond IN10YT=RR yield is expected to rise 2-3 basis points due to bets Patel will hold interest rates in the near-term.

But on a broader view, Patel is seen as offering the closest feel to a second term by Raghuram Rajan, who unexpectedly announced in June he’s quitting as governor. Rajan won the respect of investors for helping stabilize confidence in India after taking over in 2013 when the country was in the midst of a currency crisis.

Patel, a deputy governor of the Reserve Bank of India (RBI) since 2013, was appointed to the top post on Saturday and starts his new role on Sept. 4. Read More

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