A recent press report said that the Government has given Dr D. Subbarao, two-year extension as the Governor of the Reserve Bank of India. He will hold office till 2013.
A statement from the Prime Minister’s Office said that the Prime Minister has approved the extension of the term of Dr Subbarao as Governor of the Reserve Bank of India for a further period of two years with effect from September 5, 2011 up to September 4, 2013.
Reports said that the move is meant to give an impression of stability to the economy. It added saying that in the current global economic situation, bringing a new person at the control would not be a wise step.
Reports said that the finance Secretary before becoming the 22 {+n} {+d} Governor of the RBI in 2008, Dr Subbarao steered the country through the economic crisis. He is credited with taking a tough monetary stance to check inflation. Under his governorship, the RBI doubled the frequency of monetary policy reviews from every quarter to eight times a year so as reduce the need for off-cycle rate moves.