By ruling himself out for a second term, Mr. Rajan has brought down the curtain on the unfortunate and unpleasant politics around his continuance. As Mr. Rajan himself once said, if the two always agreed, the public should be very worried. In doing so, he has saved the Centre from the possible repercussions that a refusal to grant a second term could have had. In declaring that he will not seek a second term after his first ends in September, Reserve Bank of India Governor Raghuram Rajan has chosen the best and most dignified way out of a situation that was getting increasingly ugly. The slow pace of interest rate cuts, a result of what Mr. Rajan saw as fresh or rising inflationary pressures, is on that list; but although the RBI has cut rates by 1.5 percentage points since 2015, private investments are still moribund.

Source: The Hindu June 19, 2016 20:15 UTC