Shaktikanta Das’ extension for three years as the governor of the Reserve Bank of India (RBI) will ensure policy continuity and also signals the government's endorsement of the policies pursued by the central bank. Analysts say now that Das’ reappointment is confirmed, and that too for the maximum three years permitted, a reverse repo hike can be expected in the December monetary policy.

       With the repo rate at 4 per cent, and the reverse repo at 3.35 per cent, the policy rate corridor has widened to 65 basis points, from its usual 25 basis points. This has to be ...