RBI policy review Tuesday likely to hold rates
The Reserve Bank of India (RBI) is likely to keep rates unchanged when it reviews its monetary policy Tuesday, its first exercise after the installation of the new union government.
Known for the primacy he accords to controlling inflation, RBI Governor Raghuram Rajan gave an indication Friday when he told reporters in Tokyo that the “government and the central bank have both stressed on the need to bring down inflation while respecting the fact that growth is very weak”.
The RBI is expected to keep its repo rate (at which it lends money to commercial banks) unchanged at 8 percent.