MUMBAI: India has re-appointed central bank governor Shaktikanta Das for three more years or until further orders, in a move welcomed on Friday by markets and economists.
Under Das, the Reserve Bank of India (RBI) has cut key interest rates to record lows and infused massive rupee liquidity into the banking system to shore up an economy hit by the COVID-19 pandemic.
The cabinet’s appointments committee approved the decision to re-appoint Das late on Thursday. He first took the helm in December 2018, moving from the position of secretary of the department of economic affairs in the finance ministry.
The extension is longer than the norm of a two-year term in the last two decades but analysts said that was probably because of the economic situation and the work Das has done.
The move is a sign of the government’s “continued trust”, wrote Barclays economist Rahul Bajoria.
“Under Governor Das, the central bank has done the heavy lifting to support the economy through the COVID crisis, with fiscal policy playing a supportive role,” he added.
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