The appointment of Urjit Patel as the next Reserve Bank of India (RBI)'s Governor signals a “strong likelihood of policy continuity,” and policies rather than personalities would ultimately drive ratings, Fitch Ratings said on Sunday.
The comment comes after RBI Deputy Governor Urjit Patel won a promotion to run the central bank on Saturday with a mandate to cement the bank's commitment on keeping inflation low.
Fitch director Thomas Rookmaaker, director of its Asia-Pacific sovereign ratings group, said Patel would need to continue the fight against high inflation and shoring up weak balance sheets at lenders. “Urjit Patel's appointment as the next RBI governor signals a strong likelihood of policy continuity,” Rookmaaker wrote.
“Having served as deputy governor in the past three years, Urjit Patel is well-positioned to further institutionalise these policy changes in the period ahead.”
Rookmaaker added Fitch did not drive ratings based on personalities but policies. “A central bank governor doesn't need to have a rock star status to be successful in reigning in inflation or cleaning up the banking sector,” he added.