Chief Economic Advisor Raghuram G Rajan, who as IMF economist had predicted the 2008 global crisis, was on Tuesday appointed the new RBI Governor.
Rajan, 50, will succeed D Subbarao, who by his hawkish policy, stood his ground on continuing with a tight monetary policy despite repeated entreaties from the Government to ease interest rates to boost growth. Subbarao will demit office on September 4.
“Prime Minister Manmohan Singh has approved the appointment of Dr Raghuram Rajan as the Governor of Reserve Bank of India (RBI) for a term of three years,” an official release said.