India has appointed a new central bank governor in a surprising move that some experts say strengthens outlook for rate cuts early next year.

Sanjay Malhotra, a career civil servant, has become India’s new central bank governor at a time when the country’s economic growth is slowing and inflation is surging.

The new RBI Governor takes charge at a time when the Indian economy faces significant challenges. GDP growth slowed to a seven-quarter low of 5.4 percent in the September quarter, and inflation remains above the 6 percent threshold set for the central bank by the government.

The country's inflation rate reading comes after India had missed growth expectations for its fiscal second quarter

The new governor of the Reserve Bank of India brings a pro-growth sensibility to the position that raises the likelihood of lower benchmark policy rates early next year.

MUMBAI: With the finance ministry insider Sanjay Malhotra helming the Reserve Bank from Wednesday, analysts are expecting the easing cycle to begin faster, especially given the macro-challenges that are sure to hit the country after Donald Trump takes charge of the White House next month,

India has appointed a new central bank governor in a surprising move that some experts say strengthens outlook for rate cuts early next year.