The tell-tale stories of Raghuram Rajan’s second run as Governor of Reserve Bank of India is only a buzz spook and nothing else. The report published in one part of the press that Rajan wants to leave the Central Bank at the end of his three-year term in early September, shaved 10 paise off benchmark government bond and 26 paise off the Indian currency. Thus the fake news had a direct impact on the market. The mud-slinging by Dr. Subramaniam Swamy and the after effects all show that the dirty linen is washed in public. The unwanted statements did make a change of mind at the Government level and the man concerned got a shock of his life. But one thing is sure. The false news report shook jittery markets, it showed the calming influence Rajan’s presence has had on the markets. His office, however, declined to respond queries over the media report on his lack of interest in the second term. Rajan rules the roost and no one can initiate a change of guard at the helm including the cronies to upset the applecart at the present situation.
Jayanthi S Maniam
(The views expressed by the author in the article are his/her own.)