RBI Leadership Shift: Balancing Inflation and Growth

The Reserve Bank of India, under Shaktikanta Das, maintained a tight focus on inflation, resisting pressures to cut interest rates. As Das concluded his tenure in 2024, Sanjay Malhotra takes over, facing the challenge of balancing growth and inflation, amidst global economic influences and domestic expectations.

The Reserve Bank of India (RBI) under the stewardship of Shaktikanta Das held a firm stance on inflation, opting against interest rate cuts despite declining economic growth. This approach was encapsulated in its 'Arjuna's eye' policy, mirroring the singular focus on inflation above growth rates.

Das, credited for adeptly guiding monetary policy through the pandemic, concluded his term as governor at the end of 2024. His successor, Sanjay Malhotra, was swiftly appointed to navigate the evolving economic landscape, characterized by rising calls for rate cuts and shifting global economic dynamics.

As the central bank's monetary policy committee prepares for its February review, the tension between inflation control and growth stimulation takes center stage. The new leadership will need to tackle internal dissent and external fiscal conditions as they plot RBI's course in the coming months.

(With inputs from agencies.)