By Manuel Hinds -
In his first official act as the new governor of the Reserve Bank of India (RBI), Raghuram Rajan raised the benchmark interest rate from 7.25 to 7.5%, causing a ripple of surprise in financial circles and eliciting protests from various business representatives. But for people who know the current condition of emerging markets and Rajan’s professional trajectory, this was not surprising, at all.
Rajan has no qualms about staging such challenges. In 2005, Rajan was chief economist of the International Monetary Fund and attended the top central bankers’ get together in Jackson Hole, Wyoming, to present a paper on how the financial sector had evolved during Alan Greenspan’s era.
READ MORE ON QZ
India's new finance governor raises interest rates - Sends warning to entire global economy
