New Delhi, (PTI) Terming the move to appoint Urjit Patel as next RBI chief as a "brilliant choice", experts and eminent economists feel that "excellent credentials and experience" make him well equipped to lead the central bank in "these challenging times".
"It is a brilliant choice. Urjit Patel is the architect of the new monetary policy agreed upon by the Finance Minister and the RBI. He has a sharp mind and lots of experience in the bank. I congratulate the government on such an excellent choice," Indian-origin British politician and economist Meghnad Desai told PTI.
Echoing similar views, former Principal Economic Advisor in the Finance Ministry Ila Patnaik said, "I am very glad to see that the government has appointed Urjit Patel as governor.
Urjit played a key role in creating the inflation targeting framework. I believe he will continue to strengthen the framework. With his experience at RBI and his excellent credentials as an academic, he is well placed to lead the RBI in these challenging times. "
Terming the appointment of Patel as good for India as the move shows continuity, globally acclaimed French economist Guy Sorman said after the eviction of Raghuram Rajan, one could fear a renewed inflationary policy which would have been a disaster for India and a wrong signal to foreign investors.
"Now it is clear that Rajan had been fired for purely domestic political reasons: Patel and Rajan share the same interpretation of monetary policies. The only difference between the two men? One was US educated... Patel was educated in the UK," Sorman said.
"... Patel will bring to the mix the new global consensus about monetary policy: nothing beats stability and predictability. A predictable and stable currency is an incentive for domestic investment, it is attractive for foreigners, it is social justice for every Indian who will be able to save and not become a victim of unpredictable prices.
The poor are to profit the most," he added.
The government yesterday announced appointment of Patel as the next Governor of Reserve Bank of India for three years with effect from September 4, 2016. He will replace Raghuram Rajan.