Pressure for rate cut mounts as Raghuram Rajan completes second year as RBI Governor

Known for his hawkish outlook, Reserve Bank of India Governor Raghuram Rajan completes two successful years in office today.

Bringing the retail inflation down to 3.8 per cent in July from 9.8 per cent in September 2013, Governor Rajan now faces the challenge for rate cuts with the finance ministry raising alarm bells over the deflation demon in the economy.

Raghuram Govind Rajan took charge as the 23rd Governor of RBI on September 4, 2013 for a three-year term. Market experts in an interview stated that Rajan has been the best that the country could have had in the post in the last two years.

Structural changes initiated by him have brought in instant results amid a bleeding rupee that plunged down to 70 levels and very high current account deficit.

With steep price declines, along with a seven per cent GDP in the first quarter of 2015-16, down from 7.5 per cent in the previous quarter, Rajan now has a target for urgent rate cuts that will help India's economy grow with fast pace.