How Will Rajan's Departure Impact RBI Policy?

The transcript discusses the implications of a change in the Reserve Bank of India's (RBI) leadership, focusing on the continuity of monetary policy reforms initiated by Raghuram Rajan. It highlights the importance of the new governor's enthusiasm in maintaining these reforms, particularly in inflation targeting and reducing bad loans. The market's reaction to Rajan's departure is noted, with concerns about the RBI's independence under new leadership. The transcript also explores Rajan's political challenges and potential successors, emphasizing the need for a governor who can uphold the RBI's strong independence.

What are the two key reforms mentioned that Rajan championed in recent years?

• Interest rate cuts and fiscal stimulus

• Foreign exchange control and trade tariffs

• Monetary Policy Committee and price stability

• Bank privatization and deregulation

What is the main concern regarding the new governor's approach to monetary policy?

• The new governor might increase interest rates

• The new governor's enthusiasm and tone in implementing policies

• The new governor might focus solely on economic growth

• The new governor might ignore inflation control

According to Mark Mobius, what is the significant factor following Rajan's departure?

• The impact on foreign investments

• The choice of Rajan's successor

• The change in fiscal policy

• The immediate effect on the stock market

What aspect of Rajan's approach was seen as objectionable by some Indian politicians?

• His focus on inflation control

• His criticism of the government on non-economic issues

• His support for foreign investments

• His reluctance to change interest rates

What would an appointment from the RBI signify according to the transcript?

• A focus on economic growth over stability

• A reduction in foreign exchange reserves

• A continuation of RBI's strong independence

• A shift towards more government control