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Patel’s Big Day Out Signals Abrupt Shift From Rajan’s Era

  • RBI cites easing inflation, Patel notes uncertain U.S. vote
  • Rajan had stared down government officials urging rate cuts
Urjit Patel, governor of the Reserve Bank of India, arrives at a news conference in Mumbai, on Oct. 4, 2016.

Urjit Patel, governor of the Reserve Bank of India, arrives at a news conference in Mumbai, on Oct. 4, 2016.

Photographer: Dhiraj Singh/Bloomberg
Updated on

It was meant to be independence day for India’s central bank. It might instead be viewed as mission accomplished for Prime Minister Narendra Modi’s government.

With a new governor at the helm of a newly-minted Monetary Policy Committee, the bank had the opportunity Tuesday to buttress the autonomy over interest-rate decisions that former leader Raghuram Rajan fought for. With the economy growing in excess of 7 percent, most economists predicted no change in the benchmark.