Rajan set to take over as RBI Guv tomorrow

Rajan,50,is also understood to have finished his teaching assignments at the University of Chicagos Booth School of Business where he is a professor of finance. His last few days at the finance ministry,where he worked for a little more than year as the chief economic advisor,were marked by long and frequent meetings with finance minister P Chidambaram to work out measures to curb the current account deficit and stabilise the rupee.

So exchanging his first floor office in North Blocks finance ministry for an 18th floor office at the RBIs headquarters may seem like a natural progression. But awaiting him are problems of a volatile currency and threats of a sovereign downgrade by rating agencies.

His knowledge of the global economy along with recent work at the finance ministry wills serve him well at the RBI, said Bimal Jalan,former RBI Governor who held office during similar circumstances of the Asian crisis of 1997-98.