Raghuram Rajan rules out a second term as India's central bank chief

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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