Raghuram Rajan to be next IMF boss? Here's latest buzz in post Lagarde era

Former Reserve Bank of India Governor Raghuram Rajan is among the favourites in the race of the next IMF chief. The top post of the International Monetary Fund fell vacant after Christine Lagarde announced her resignation following her nomination as president of the European Central Bank. According to latest media reports in the UK, several leading economists have voiced their opinion in favour of Rajan. At present, the 53-year-old is a professor at the University of Chicago. The ex-RBI Governor has so far refuted any such reports of him joining the IMF race.

According to an HT report, UK’s leading daily The Sunday Times published an extensive article as to why Rajan fits the bill for top job at the IMF. “This is an ideal time for the job to be opened up to an emerging-market candidate. Raghuram Rajan, the former governor of India’s central bank… has good IMF credentials as one of its former chief economists,” economics editor David Smith wrote.

Not just the IMF, Rajan’s name has also been doing rounds for the post of Governor, Bank of England. However, the HT report said that Rajan has denied that buzz too. In a BBC interview, Rajan reportedly said that, “I am perfectly happy in my job and that is not a diplomatic statement. It’s actually the truth. I haven’t applied for any job.” 

Recently, Rajan had slammed the Modi government’s proposed overseas debt plan. In a column in The Times of India, Rajan raised doubts the government’s argument that raising part of its gross borrowing from overseas markets would ensure enough domestic credit for the private sector.

During the Lok Sabha Elections, there was buzz that Rajan will be named as the Union Finance Minister in case the Congress comes to power. "I am very happy where I am. But if there is an opportunity to be of use I will always be there," he had said.

Rajan  is credited with taking some bold decisions on cleaning up of bank balance sheets as the RBI Governor.