Rajan has a “mountain to climb,” The Hindu said.
Despite clamor from business for lower borrowing costs, analysts say he cannot loosen monetary policy to spur the economy for fear of higher inflation and weakening the rupee further.
The former top finance ministry adviser and professor at the prestigious University of Chicago’s Booth School of Business has sought to temper expectations of what he can do, saying he has “no magic wand.”
“Any entrant to the central bank governorship probably starts at the height of their popularity. Some of the actions I take will not be popular,” he said in his inaugural speech.
“The governorship of the central bank is not meant to win votes or Facebook ‘likes,’” he added.