Extension given to the RBI governor is good for the markets

While it is true that institutions are more important than the person, ideology and approach of Governors of central banks are important

The extension given to Mr. Shaktikanta Das, the governor of Reserve Bank of India (RBI) is good news for the market, as the economy is in the preparation mode for a takeoff. The government has quite rightly made the announcement before the term came to an end so that there is certainty on all sides. From a market perspective, this means that the mindset of the Governor is known and there will be no surprises, which could have been the case in case of a change.

While it is true that institutions are more important than the person, ideology and approach