As Shaktikanta Das approaches the end of his six-year tenure as Reserve Bank of India (RBI) Governor on December 10, discussions about a potential extension are intensifying. Das has led the RBI since December 2018, having previously served in various key positions, including as Secretary of the Department of Economic Affairs.
His leadership has garnered international recognition, reflected in an A+ grade awarded by Global Finance for two consecutive years, assessing central bank governors based on inflation control, economic growth, and currency stability.
With the upcoming monetary policy committee meeting scheduled for next week, Das faces pressure amid calls for a rate cut, particularly following disappointing GDP figures for the second quarter. Analysts predict that, despite inflationary pressures, a rate cut before February 2025 is unlikely.
ICRA's recent report suggests that inflation is projected to ease to 4.7% in FY2025, higher than the MPC's forecast, leading to expectations that the committee will adjust its inflation forecasts upwards. Consequently, a shallow rate cut cycle may commence in February 2025 or later.
Das's tenure has navigated significant challenges, including the COVID-19 pandemic and the economic slowdown of 2019-20, during which the RBI implemented measures to support micro, small, and medium enterprises. His approach included a significant rate cut in March 2020 to enhance liquidity amid economic distress.
Notably, Das has maintained a unified stance between the RBI and the Finance Ministry throughout his tenure, avoiding public disputes over monetary policy, a contrast to previous administrations.
As speculation grows regarding his future, Das emphasizes the importance of the institution over individual leadership, leaving the possibility of an extension open.