Poonam Gupta Takes Charge As RBI Deputy Governor, To Join MPC in June

Dr. Poonam Gupta has officially taken charge as Deputy Governor of the Reserve Bank of India ( RBI ), marking a significant addition to the central bank's leadership. Appointed for a three-year term, she succeeds Michael Patra, whose tenure concluded in January 2025. Gupta's appointment comes at a pivotal time as the RBI navigates complex economic challenges.

Key Responsibilities and MPC Inclusion

In her new role, Dr. Gupta will oversee several critical departments within the RBI, including Monetary Policy, Economic and Policy Research, Statistics and Information Management, and Financial Stability. She is set to join the six-member Monetary Policy Committee (MPC) in its upcoming June meeting, replacing Deputy Governor M. Rajeshwar Rao, who temporarily held the position following Patra's departure. The MPC has already implemented a 50 basis point reduction in policy rates this year, bringing them down from 6.5% to 6%, with further adjustments under consideration.

 

Extensive Economic Expertise

Dr. Gupta brings a wealth of experience to the RBI, having previously served as the Director General of the National Council of Applied Economic Research (NCAER), India's premier economic policy research institution. Her international experience includes roles at the World Bank and the International Monetary Fund (IMF), where she focused on macroeconomic stability and policy research. Additionally, she has been a member of the Prime Minister's Economic Advisory Council and has contributed to various economic advisory committees.

Dr. Gupta holds a Ph.D. in economics from the University of Maryland, USA, and a master's degree from the Delhi School of Economics. Her academic and professional work has often emphasized the importance of robust inflation targeting frameworks. In a 2024 joint paper with economist Barry Eichengreen, she argued that India's inflation targeting regime over the past eight years has led to more stable inflation rates, better-anchored expectations, and more effective monetary policy transmission.

Navigating Inflation Debates

Dr. Gupta assumes her position amid ongoing debates regarding the RBI's approach to inflation targeting. Some economists advocate for a focus on core inflation, which excludes volatile food and energy prices, arguing that headline inflation is often influenced by supply-side factors beyond the central bank's control. Dr. Gupta's expertise in macroeconomics and her previous research suggest she will play a crucial role in shaping the RBI's strategy in this area.

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