Brexit caused Rajan to not take up UK job

Brexit caused Rajan to not take up UK job

Agency News

The former Reserve Bank Governor, Dr. Raghuram Rajan, has indicated the political challenges posed by Brexit were the reasons he didn’t apply to head up the Bank of England.

In a BBC interview, he confirmed he hadn’t sought the position and cited the fact that central banking 'has become much more political in recent times' as an explanation for why not.

The government is seeking a successor to Mark Carney, who will step down in January. Carney has been thrust into the heart of the Brexit debate either by having to adjust monetary policy to react to it or because of criticism from some lawmakers that he is overly pessimistic about the economic risks of leaving the European Union.

'It’s best a country has someone who understands the political situation within and knows how to navigate that,' Dr. Rajan told the BBC. 'It’s obvious I am an outsider and I have very little understanding of the deep ebbs and flows of politics in that country.'

Dr. Rajan, who now teaches at Chicago Booth School of Business and once served as chief economist of the International Monetary Fund, was recently named as the second most likely to get the BOE job by economists in a Bloomberg survey.

The Chancellor of the Exchequer, Philip Hammond started searching for a replacement for Carney in April and has attracted 30 applications. He met Dr. Rajan in January, according to the Treasury, although the latter  declined to tell the BBC if he had been approached to run the central bank.'I’m perfectly happy in my job,' he said. 'I haven’t applied for any job.'