Nomura anticipates potential shifts in monetary policy with the appointment of Sanjay Malhotra as the new RBI Governor. Malhotra, who previously served as the Secretary of Revenue, brings a wealth of administrative experience and a keen understanding of government revenue dynamics to the central bank. This background positions him to balance the dual mandates of growth and inflation management effectively.
Nomura highlights three key areas of potential change under his leadership:
- Accommodative Monetary Policy: A possible shift toward a more growth-oriented monetary policy, aligning with the government’s broader economic priorities.
- Macroprudential Policies: Decisions on crucial macroprudential policies, potentially impacting financial stability and market operations.
- Currency Management: A focus on driving the central bank’s currency management strategy, ensuring a stable currency amidst global and domestic challenges.
With Malhotra at the helm, Nomura expects a more pragmatic approach to monetary policy, especially given his experience in navigating complex economic scenarios during his tenure at the Ministry of Finance.
