Reserve Bank of India (RBI) governor Raghuram Rajan will be announcing the third bi-monthly policy statement on August 9. The event assumes significance as it will be his last, since his tenure ends on September 4 and the next policy statement is due on October 4.
Retail inflation in June was 5.77 percent — almost at a two-year high and close to the upper end of the central bank’s inflation target of 6 percent — effectively ruling out the possibility of a rate cut. Analysts expect the repo rate (also policy rate) to remain unchanged at 6.50 percent.
Rajan’s three-year term at the RBI ends on September 4 and the Narendra Modi government is yet to announce his successor.