India: Change in monetary policy framework with new RBI governor? - TDS

Analysts at TD Securities note that India’s government appointed Shaktikanta Das as the 25th governor of the RBI, for a 3 year term.

Key Quotes

“Das helped to oversee PM Modi’s demonetisation programme in 2016 and was in favour of lowering rates during his time at the finance ministry when he was economic affairs secretary between 2015-2017. He is currently a member of the Finance Commission of India and a Sherpa for India at the G20.”

“While the appointment is unlikely to lead to changes in the monetary policy framework, the prospects of an easier stance on monetary has increased as well as the potential for the government to get its way in terms of easier lending standards and reserves transfers. His appointment comes just ahead of the next RBI board meeting on Friday.”