How Will Rajan's Departure Impact RBI Policy?

The transcript discusses the implications of a change in the Reserve Bank of India's (RBI) leadership, focusing on the continuity of monetary policy reforms initiated by Raghuram Rajan. It highlights the importance of the new governor's enthusiasm in maintaining these reforms, particularly in inflation targeting and reducing bad loans. The market's reaction to Rajan's departure is noted, with concerns about the RBI's independence under new leadership. The transcript also explores Rajan's political challenges and potential successors, emphasizing the need for a governor who can uphold the RBI's strong independence.

What are the potential implications of appointing a new RBI governor from the current bureaucratic ranks?

In what ways could the next RBI governor signal continuity or change in monetary policy?