April 24: Raghuram Rajan, former Governor of the Reserve Bank of India, has been listed by The Financial Times as a possible candidate for the post of Governor of Bank of England, one of the oldest central banks in the world. In its report, The Financial Times said that attracting the highly respected Chicago-based economist would be a coup.
Raghuram Rajan is seen as a prospect to replace Mark Carney, the current governor whose term ends next year. Philip Hammond, UK chancellor, has been quoted by the report as saying that the lookout for candidates has already begun. The Treasury is expected to publish the advert for the job in the coming July, marking exactly a year before the Carney’s term comes to an end.
Mark Carney is also the first foreign governor of UK’s central bank in three decades. Bank of England is likely to have another foreign governor this year, according to Hammond. FT has also listed Indian-origin Shriti Vadera, chair of Santander UK as a possible candidate. Other persons in the list include Ben Broadbent, deputy governor for monetary policy, Andy Haldane, BoE chief economist, Minouche Shafik, Director of the London School of Economics.
Rajan, an alumnus of IIT Delhi and IIM Ahmedabad, is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at University of Chicago Booth School of Business. He had served as the governor of RBI between September 2013 and September 2016. Prior to his appointment as the RBI governor, Mr. Rajan had also worked as the chief economist at the International Monetary Fund from October 2003 to December 2006.
This is also not the first time that Rajan’s name has been associated with a top central bank. In October last year, financial magazine Barron’s had tipped his name as the ideal choice to chair the US Federal Reserve, though Jerome Powell later took charge as the Chairman of the Federal Reserve in February this year.