India's new central bank governor takes over as economic growth slows and inflation rises

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Sanjay Malhotra, a career civil servant, has become India’s new central bank governor at a time when the country’s economic growth is slowing and inflation is surging

NEW DELHI — India got a new central bank governor on Wednesday as the country’s economic growth slows and inflation surges.

Sanjay Malhotra, a career civil servant, was appointed to a three-year term as head of the Reserve Bank of India, succeeding Shaktikanta Das, who retired as central bank governor after an extended six-year term.

India’s economy grew at a 5.4% annual pace in the last quarter, the weakest pace in nearly two years, while inflation rose to 6.2% in October, well above the RBI’s target of 4%, due to rapid increases in vegetable prices.

“Malhotra takes over at a time when there is a growing clamor for the RBI to ease policy rates in order to support growth. His challenge will be to steer the central bank through a period of global and domestic uncertainty,” the Indian Express newspaper said in an editorial.

In a brief statement Wednesday, Malhotra, who used to be a revenue secretary, said his focus would be on stability, quick implementation of policies, and economic growth,

«Stable policies are very important, whether it’s taxation, fiscal, or monetary policy,» he said.

He also said remaining “alert and agile” to meet the changes the world witnesses today, whether geopolitical tensions, the impact of climate change or political uncertainty, was a must.

«People need continuity and stability rather than a day-to-day kind of policy,» he said.

Malhotra, 56, had earlier worked in India’s Ministry of Power and headed a public sector company that provided finance for rural electrification projects.

In his previous role as India’s revenue