Jahangir Aziz, chief economist at JPMorgan credits Rajan's success to the steps taken for inflation targeting. He says this is perhaps India's first big chance of breaking the inflation challenge. However, he cautions that rates at the moment are not high enough to meet FY15 inflation target.
RBI Governor Duvvuri Subbarao said credible fiscal consolidation is a pre-condition for stabilising inflation and in securing non-inflationary growth