Reactions to Rajan's decision: Govt appreciates good work done by Rajan, says Arun Jaitley

Ending months of speculation over whether or not he would continue as RBI Governor, Raghuram Rajan on Saturday said he intends to step down at the end of his term on September 4 this year to return to academia. According to a Reuters report, officials from PMO and the Finance ministry have made no immediate comment on the development.

Arun Jaitley, Finance Minister said on Twitter: "Dr. Raghuram Rajan has announced his intention to go back to academics at the end of his current assignment. The Government appreciates the good work done by him and respects his decision. A decision on his successor would be announced shortly."

 

Here are a few more reactions from the industry:
 

Jayesh Mehta, Bank of America: Expect currency to open slightly weaker on Monday

Manish Chokhani, Enam Holdings: Rajan leaving is a loss to India. We should have had Rajan not just as RBI Governor, but also FM someday

Ramesh Damani, BSE: Governor Rajan leaving will disappoint the market. His exit will be a long-term negative for India. However, there is no reason to believe that the bull market will break down here. My sense is that interest rates will come down faster now

Narayana Murthy, Infosys: It is sad that country has lost a highly accomplished and respected economist. Hints that his exit may impact the targets of 10% growth and creation of 10 million jobs

Keki Mistry, HDFC: Rajan was obviously very very popular... expects fall in the market, pressure on the rupee. Expects govt to come out with some sort of response

Arundhati Bhattacharya, SBI: Dr. Rajan is a person of very high caliber, who has built ably on the reputation of our Central Bank and given it a very large measure of credibility

Vishal Sikka, Infosys: I would have loved to see Rajan continuing as RBI Governor. Rajan has been an extraordinary governor. I am 'excited' to see what Rajan does next after his September exit

Kiran Mazumdar-Shaw, Biocon Limited: Rajan played a very big role in  stabilizing Indian ecnonomy. He laid out a detailed plan to clean up Indian banking system. There was lot of hostility against Rajan from various quarters. It will be premature to comment on the timing of this letter from Rajan. He played a key role in attracting foreign investments into India