RBI governor Subbarao gets two-year extension
09 Aug 2011
D Subbarao will continue as governor of the Reserve Bank of India for another two years, beginning 5 September 2011, ending a likely monetary policy uncertainty with the term of the current head of the financial sector regulator ending in September this year.
"The prime minister has approved the extension of the term of Dr D Subbarao as governor of the Reserve Bank of India for a further period of two years, ie, from 5 September 2011 to 4 September 2013," a government release said today.
The continuation of Subbaro as governor of the RBI also brings to rest any doubts over possible differences between the government and the central bank over fiscal policy.
Subbrao, 61, took over as Reserve Bank governor for a three-year term in September 2008. An IAS officer, he was secretary of the finance ministry before taking over as head of the central bank.
In the early 1990s, when Dr Manmohan Singh was the finance minister, Subbarao was a senior official in the finance ministry.
A tough policy maker, Subbarao has the distinction of waging a relentless war against inflation. He had even gone to the extent of increasing the frequency of monetary policy reviews from four times to eight times a year in a bid to tame inflation.
His extension comes at a time when policy makers are faced with the challenge of managing the country's financial sector in the backdrop of developments in the US and the Eurozone that has brought in uncertainty in the markets across the world.
