The RBI Governor is no magician. | Illustration: Mihir BalantrapuThe new RBI Governor walked into his office and was greeted by a Ganesh pooja organised by the bank’s staff to commemorate Ganesh Chathurthi. Urjit Patel will hope to stock up on the sweet dumplings to help tackle the Impossible Trilemma he must negotiate as RBI Governor. A central bank governor’s tenure is measured, not by his Facebook Likes, but by how ruthlessly he quells inflation. There’s no way anyone can juggle interest rates, exchange rates and liquidity, while satisfying the Centre, bank lobby and corporate lobby — all at the same time.

Source: The Hindu September 05, 2016 11:26 UTC