Appointment of Shaktikanta Das has created a storm in media even before he takes any policy decision. Most Twitteratti has ridiculed him for his degree in History.
While its easy to make fun of qualifications but leading an institution is more about leadership and having smart people around you to provide right information.
High Real Interest Rate
While Urjit Patel supported government on demonetization, high real interest rates during histenure has killed economy. His predecessor has said that he want real interest rate at 1.25%-1.75%. With inflation below 3%, its beyond imagination that why our repo rate is 6.25%. Repo rate at 5% would give big boost to GDP and reduction in EMI would be a good politics for government.
Current government has been one of the best governments to control fiscal deficit and in last year of term, they require higher dividend to ensure that additional expenditure is funded. Raghuram Rajan had increased dividend payout, which has been reduced by Urjit Patel so government demand is understandable but this should never have reached appoint of no return
Recently government and RBI has criticised each other publicly and most points raised were high on rhetoric. Comparing India to Argentina is unwarranted and invoking section 7 to control RBI was unwarranted.
Hopeful Corporate Sector
Corporate sector has welcome appointment of new governor as they think reduced interest rate is around the corner. New governor would also do well to understand all point of view on NPAs related to power sector and understanding PCA framework for public sector bank