Subbarao takes over as Governor of RBI
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Duvvuri Subbarao took over as Governor of the Reserve Bank of India on
Friday afternoon, succeeding Y V Reddy whose term has come to an end.
Subbarao, 59, who was previously Finance Secretary in New Delhi, assumed
office at the central bank's headquarters in Mumbai.

He has been appointed for three years. He takes over as annual inflation is
running above 12 percent and economic growth is slowing from a rapid clip of
9 percent and above in the past three fiscal years.

The central bank raised interest rates three times in June and July to calm
price pressures and inflationary expectations, taking its key lending rate
to a seven-year high of 9.0 percent.

Inflation has eased from a peak of 12.63 percent in early August to 12.34
percent later in the month. Analysts say the slowing pace gives Subbarao
time to assess the price and growth outlook before the central bank's next
rate review in late October.

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