'Stability' in economic policy is buzzword for new RBI Guv Malhotra

The incoming governor of the Reserve Bank of India (RBI), Sanjay Malhotra, unwittingly showed his age, being one day, whilst addressing the media at RBI headquarters in Mumbai on Wednesday.

- GOVINDRAJ ETHIRAJ

He was careful not to say anything that could be construed as a forward-looking policy statement that could rock the markets in coming days.

He was even more wise not to do a question-and-answer session with the gathered media who were, as I would, itching to ask some pointed questions, including, presumably, whether he would cut interest rates.

Interestingly, he spoke of policy stability and stability in general several times.

And while that applies to the RBI in general, it would actually apply specifically to his previous job at the Ministry of Finance where he was Revenue Secretary.

Which is why, for someone who heard of his move to RBI governorship at best a couple of days before the world did, he was perhaps reflecting more on stability in the context of economic policy than monetary policy.