• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney Invest Now master your money
Moneycontrol

Home » News » Economy

Feb 17, 2017, 02.46 PM | Source: Moneycontrol.com

Low-profile Guv Urjit Patel has ticked right boxes on policy

Like his predecessor Raghuram Rajan, incumbent governor Urjit Patel has developed a knack for catching the market by surprise

Like this story, share it with millions of investors on M3

Low-profile Guv Urjit Patel has ticked right boxes on policy

Like his predecessor Raghuram Rajan, incumbent governor Urjit Patel has developed a knack for catching the market by surprise

Post Your Comments

Share Cancel

Moneycontrol Bureau

Two weeks ago, the Reserve Bank of India (RBI) surprised many when it left key rates untouched even most analysts expected it to cut rates.

Like his predecessor Raghuram Rajan, incumbent governor Urjit Patel has developed a knack for catching the market by surprise -- the skill was on display the most when the historic decision to phase out high-value currency notes was announced on the eve of November 8.

(While it is perceived that the government took the decision, protocol dictates that such decisions are taken by the central bank. Accordingly, the decision to demonetise Rs 500 and Rs 1,000 was taken by the RBI on the 'advice' of the government.)

Demonetisation led people to question Patel’s autonomy and muscle as the Reserve Bank chief. His reluctance to communicate proactively led people to believe he was kept out of the affair.

But the governor told Network18 Group Editor in Chief Rahul Joshi that the office requires him to develop a 'thick skin', and that we welcome constructive criticism.

Patel contrasts with his predecessor, Raghuram Rajan, who spoke out clearly, well and often, sometimes on issues seen as beyond his remit. Patel is quiet while Rajan was outspoken.

Be that as it may, he has done well on the issues that should matter the most to a central bank chief: the rupee has been stable, inflation is under control while the monetary policy decision-making process has got an upgrade the monetary policy committee.

Patel, who holds a PhD from Yale University, has worked at the International Monetary Fund (IMF), The Brookings Institution at Washington and the Massachusetts-based Boston Consulting Group. He became deputy governor in January 2013.

The Kenyan-born had once described the central bank's role in the economy as being "neither a hawk nor a dove, but an owl" when it comes to taking monetary policy decisions.

"The owl is traditionally a symbol of wisdom. We are vigilant when others are resting," he said while brushing off the hawk and dove characterisations that are used to describe central banks that maintain very tight or loose monetary policies, respectively.

Buy, Hold, Sell ? Hear it first on M3
Low-profile Guv Urjit Patel has ticked right boxes on policy

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login