RBI Governor Shaktikanta Das
The Reserve Bank of India’s (RBI) monetary policy in December will be special in many ways. This time the Monetary Policy Committee meeting will be held from December 4 to 6 and a few days later i.e. December 10, the tenure of the current RBI Governor Shaktikanta Das will also end. In such a situation, it is a big question whether he will continue in his position or not, because his continuity in this position also has a connection with his pocket.
Shaktikanta Das took over as RBI governor six years ago after the sudden resignation of Urjit Patel. During his tenure, he has done remarkable work in controlling the inflation problem that arose in the country due to Covid and subsequently. In such a situation, it is very important that there is no discussion of any kind about the extension of his mandate.
Inflation situation and Shaktikanta Das’s exit
The inflationary situation in the country seems to be worsening once again. In October, the retail inflation rate crossed the upper limit of 6 percent again and reached 6.2 percent. To control inflation, Shaktikanta Das first increased the repo rate to 6.5 per cent and then kept it stable for about a year and a half.
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Now when there are chances that inflation will rise again in the country. On the other hand, Donald Trump’s victory in the United States is also expected to have an impact on the Indian economy, because Donald Trump has spoken of rigor in foreign trade. In such a situation, Shaktikanta Das’ departure can derail this entire process.
How will it affect your pocket?
Experts believe that considering the current inflation situation and challenges in the economy, it is clear that there cannot be any reduction in the repo rate cut during the upcoming monetary policy. The RBI can wait for Donald Trump’s coronation in January and subsequent changes in US policies. Only then can you make a clear decision about it.
The repurchase rate affects your pocketbook in many ways. This decides whether the EMI of your car, home or personal loan will be reduced or not. Not only this, the flow of money in the economy is also decided by the type of buyback.
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The tenure of the Governor of the Reserve Bank of India is 3 years. The Appointments Committee of the Cabinet, headed by the Prime Minister, decides on his appointment. However, whether or not to extend the tenure of an RBI governor is up to the government. The current RBI governor, Shaktikanta Das, is 67 years old.
