ONE OF India's favourite parlour games came to an end on June 18th when Raghuram Rajan, head of the Reserve Bank of India (RBI), announced he was ruling out a second term as India's central banker. Despite bringing unprecedented stature to the job (he had previously served as the IMF's chief economist and as a professor at University of Chicago), he will be the RBI's shortest-serving governor since 1992.
A statement from Mr Rajan suggested he was pushed rather than having jumped willingly. Allies of Narendra Modi, India's prime minister, had been actively briefing against him. A clean-up of the banking system that he initiated has upset India's powerful—and indebted—industrialists.
International investors were particularly keen on Mr Rajan, a known entity in a country whose economic policymaking has often been unpredictable. His arrival in 2013 stemmed a sustained fall in the...Continue reading
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