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India’s newly-appointed central bank governor Sanjay Malhotra said that the institution has to ensure growth in the world’s fastest-expanding major economy, but steered clear of giving any indication of his future moves on monetary policy.
In his first speech since assuming the post, Malhotra said that “stability, trust and growth” are “very pertinent in an economy that still needs to develop as we are entering into Amrit kaal,” using a Hindi term that loosely translates to golden era and often makes an appearance in Prime Minister Narendra Modi’s speeches.
“The huge responsibility we have in ensuring that the growth this country has, continues,” he said.
The Reserve Bank of India is under increasing pressure to cut interest rates as growth in Asia’s third-largest economy falters. The RBI has kept interest rates unchanged for almost two years, but analysts expect the new governor to take a softer approach to monetary policy and begin easing early next year.
Read: New India Central Banker Warned of Killing ‘Golden Goose’
Malhotra pledged to stay “agile and alert” to tackle rising global challenges. The former bureaucrat started his three-year tenure as the RBI Governor on Wednesday, days after India reported its slowest growth in seven quarters. Prominent ministers in the Modi government have said overly high borrowing costs is hurting the economy.
“Change is the only constant. We have to be conscious of that,” the new governor said. “Stability and continuity in policy very important,” he added.
Known for his attention to detail and long working hours, Malhotra has replaced Shaktikanta Das, who had been leading the RBI since 2018.
(Updates with more details)
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