Sanjay Malhotra's Vision: Stability in Indian Monetary Policy

India's new central bank governor, Sanjay Malhotra, emphasizes stability in monetary policy, aiming to benefit the economy. His unexpected appointment has the market speculating on future policy directions. The previous governor, Shaktikanta Das, was known for maintaining stability, leaving interest rates unchanged but easing liquidity.

India's central banking landscape witnessed a notable shift with the appointment of Sanjay Malhotra as the new governor. In his first public address, Malhotra emphasized the importance of policy stability to support economic growth.

At a press conference in Mumbai, Malhotra stated, "All businesses, all people they do need this (policy) stability rather than (a) day-to-day kind of a policy." His remarks signal a focus on ensuring continuity in monetary policy.

The surprise appointment of Malhotra has left financial markets in anticipation of his approach to policy. His predecessor, Shaktikanta Das, who was among the longest-serving RBI governors in recent history, concluded his tenure with an unchanged interest rate, although banking system liquidity conditions were eased.

(With inputs from agencies.)