New Delhi, September 4: Dr Raghuram Rajan, the new Reserve Bank of India governor said on Wednesday that India’s economy was "fundamentally sound" and had a "bright future".
The new RBI Governor, “This is not an easy time; the economy faces challenges. Our actions will be at measured pace given the current market turmoil.”
His first policy statement will be out on September 20.
Dr Rajan said, "protecting the value of money is an important objective" and "low and stable levels of inflation crucial" remains crucial. He also said he will formulate policies that will lead to "faster, broad based inclusive growth leading to fall in poverty" while highlighting his priorities in the policy making.
Dr. Rajan also stressed on the importance of communication with the public. "The RBI should be a beacon of stability... the public should have a clear idea of the central bank... key to all this is communication," Dr Rajan said.
At the same time, he cautioned about expecting too much very soon. "No one can doubt the country's promise," the 50-year-old economist said after being named in early August to the post. He added, "there is no magic wand to make the problems disappear instantaneously."
Rajan, son of a diplomat, did his engineering at IIT and completed his Doctorate in Finance from Massachusetts Institute of Technology. He gained popularity as IMF Chief economist after publishing a paper that said sub-prime lending could lead to disaster, and warned of the global financial crisis three years before it struck.
Posted by Robin