Former RBI chief Rajan says won’t apply for top BoE job

Vastavam web: Former Reserve Bank of India chief Raghuram Rajan said on Wednesday he did not intend to apply for the job of Bank of England governor which is due to come vacant next year.Rajan has been mentioned by analysts as a possible future BoE governor after Mark Carney – who previously headed Canada’s central bank – steps down at the end of June 2019.“I think I’ve said all I can say. I’m not going to apply for a job anywhere, absolutely.”

Asked what he would do if he were approached to fill the role, Rajan – who was the RBI’s governor until September 2016 – said he had answered a similar question.British finance minister Philip Hammond is expected to name Carney’s successor later this year, and said in Washington last month that he would consider candidates from abroad.Aside from current senior BoE staff, other names mentioned include Agustin Carstens, the Mexican who is general manager of the Bank for International Settlements, Minouche Shafik, a former BoE deputy governor who heads the London School of Economics and Shriti Vadera, who chairs Santander UK.

On Wednesday, he said that banks were now much safer but risk had shifted to other parts of the financial system.Debt troubles in Argentina were likely to be repeated elsewhere and he highlighted the increased volume of ‘covenant-lite’ loans compared with before the crisis.The U.S. Federal Reserve and the European Central Bank had probably done too much in the way of asset purchases once the worst of the crisis had passed, Rajan added, and had let governments off the hook in terms of undertaking structural reform and providing fiscal stimulus.