Sanjay Malhotra Takes Charge as RBI Governor

Sanjay Malhotra officially assumed the position of the 26th governor of the Reserve Bank of India on Wednesday. Upon his arrival at the RBI headquarters, he was warmly welcomed by senior staff members.

As the former revenue secretary, Malhotra signed the necessary documents to officially lead the institution, which comes with a wide range of responsibilities. The ceremony was attended by deputy governors Swaminathan J, M Rajeshwar Rao, and T Rabi Sankar.

Economic Context and Challenges

Malhotra's appointment comes at a critical time for the Indian economy, which is currently facing a delicate balance between growth and inflation. The September quarter saw GDP growth fall to 5.4%, its lowest in seven quarters, while October's headline inflation exceeded the government's 6% target for the central bank.

Expectations and Future Outlook

Financial experts anticipate interest rate reductions at the upcoming February policy review, suggesting that Malhotra's appointment strengthens this likelihood. The Reserve Bank, under the tenure of former governor Shaktikanta Das, maintained unchanged key rates across 11 consecutive meetings spanning nearly two years, focusing on inflation control. The bank attributed sluggish growth to elevated inflation levels. Malhotra is expected to address the media later today, potentially outlining his primary areas of focus.