M A I N   N E W S

Raghuram Rajan to be new RBI Governor

New Delhi, August 6
Chief Economic Advisor Raghuram G Rajan, who as IMF economist had predicted the 2008 global crisis, was today appointed the new RBI Governor.

Rajan (50) will succeed D Subbarao, who by his hawkish policy stood his ground on continuing with a tight monetary policy despite repeated entreaties from the government to ease interest rates to boost growth. Subbarao will demit office on September 4. "Prime Minister Manmohan Singh has approved the appointment of Dr Raghuram Rajan as RBI Governor for a term of three years," an official release said.

Rajan, a former IMF chief economist, was appointed as the Chief Economic Adviser in the Finance Ministry in August last year. His appointment as the 23rd central bank chief comes at a challenging time, when the economy is battling industrial slowdown, declining rupee, rising prices and all-time high current account deficit. — PTI