For the past several years, Raghuram Rajan has distinguished himself as the head of India’s central bank. He's met opposition along the way, though, and critics don’t want him reappointed when his term expires in September. Questions about his fate are now damaging confidence among investors; bonds and the rupee both fell after an unconfirmed report that he’d declined a second term. India’s government would be wise to keep him on -- and to declare that intention soon.
Maverick lawmaker Subramanian Swamy, claiming to speak for much of the ruling Bharatiya Janata Party, has taken the lead in demanding Rajan’s exit. He says Rajan has kept monetary policy too tight for too long -- and that the central-bank governor isn’t “fully Indian.” The first charge is wrong; the second is unworthy of discussion.