DBS backs appointment of new RBI Gov, says India has 'voted for policy continuity'

The Development Bank of Singapore (DBS) today said that the Indian Government has voted for status quo, policy continuity and macro-stability with the appointment of Urjit Patel as the successor to RBI Governor Raghuram Rajan.

"This is the second instance after the decision to retain the inflation target of four percent (+/-2 percent range), where the government has demonstrated that inflation will remain a policy priority," reported DBS.

In 2014, Patel was the chief architect of a report on the monetary policy framework in January. Therein he recommended a shift to flexible inflation-targeting, move to a medium-term target of four percent (+/-2 percent range) within 12-24 months and the need to maintain positive real rates, said DBS in its daily regional market commentary.

Patel, the media-shy Deputy Governor of the RBI, is all set to take over as the Governor at the 81-year-old institution on September 4.