Urjit Patel has been named as the 24th Reserve Bank of India governor, and will step in after current chief Raghuram Rajan’s term ends in September. He is currently working as deputy governor at the central bank.
Here how broking firm Standard Chartered views the new appointment
Urjit Patel is seen as as hawkish as Rajan, and is expected to maintain policy continuity on issues such as inflation targeting, especially as Patel, like Rajan, advocates fiscal consolidation.
Standard Chartered expect a mild rebound in Indian generic bond yields and swap rates. The market will re-focus on the CPI inflation trajectory, domestic liquidity conditions and global risk sentiment.
There may be a knee-jerk move higher in dollar-rupee and asset markets may react negatively due to this, says the report. Expects Patel to maintain Rajan’s policy of curbing rupee volatility.