The Hindu Business Line : ‘Managing inflation is foremost challenge’

Mumbai, Sept. 5 Both mother nature and the Mumbai press ensured that Dr D. Subbarao, the new Governor of Reserve Bank of India, got a ‘thunderous’ welcome as he assumed charge today, signing the 60-year old ceremonial scroll at the RBI, as its 22nd Governor.

It was a day of thunder showers in the city as the new governor entered the RBI’s Central Office Building. As he stepped inside, a jostling crowd of camerapersons and photographers fell over one another for a closer view of the proceedings, as the new Governor was greeted by the deputy governors of RBI.

But none of this appeared to ruffle the Governor who went on to sign the scroll and even stepped out of his schedule to speak to the press.

The 12-foot long scroll, made of toughened paper, bears the signatures of all the governors and deputy governors of RBI. It is stored in a silver box, which is accompanied by another containing the ink pots for the signature. These articles date back to 1935 and were gifted by the Bank of England, said an official from RBI.

The outgoing Governor, Dr Y.V. Reddy, for whom it was the last day in office, welcomed his successor and his ‘friend of 30 years’ to his new job.

In his brief address to the media, Dr Subbarao said that stepping into Dr Reddy’s shoes was a ‘formidable’ task and that his first and foremost challenge was to manage inflation and anchor inflationary expectations.

“The priority in the short-to-medium term is to pursue financial sector reforms in the context of financial stability, price stability, and with an ear firmly to the ground on real sector reforms,” Dr Subbarao said.

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