The main reason behind the rexit of Rajan is, namely the adoption of an inflation target and plans to create a monetary policy committee to set interest rates.
A two-year extension to the front of the RBI still looks a real possibility. A source with Prime Minister Narendra Modi behind Rajan, the head of the central bank was more likely to be reappointed, despite considerable opposition to it within the ruling Bharatiya Janata Party (BJP).
Raghuram Rajan
Rajan may not want to work, and when a regional newspaper quoted sources close to the governor saying he could get away, briefly spooked markets.
Rajan is waived; other candidates would struggle to match his pedigree as a former chief economist of the International Monetary Fund and one of the few who predicted the global financial crisis 2007-08.
However, it would Rajan favorite choice of many investors.
