Raghuram Rajan to present his last monetary policy review today

Reserve Bank of India Governor Raghuram Rajan will present his last bi-monthly monetary policy review today in RBI headquarters in Mumbai. Mr Rajan’s tenure ends next month.

Amid the parliament passing the GST bill, analysts are expecting the RBI to hold the key interest rates. Experts say, Rajan may keep interest rate static as retail inflation continues to be above the comfort zone. How ever some analysts feel that RBI should slash the rates.

SBI Chairperson Arundhati Bhattacharya said, they are expecting that there will be no change in rate as vegetable prices are on the rise.  She



said, it will take a few months for the vegetable prices to come down when the kharif crops come into the market. 

However, Yes Bank Managing Director Rana Kapoor believes that macroeconomic conditions augur well for at least 50 basis point cut in interest rate by the RBI. He said, rates are coming down across geographies including the UK, which has strengthened the case for a rate cut by RBI.

RBI has reduced the benchmark interest rate by 1.5 per cent since January last year, and has been persuading banks to fully transmit the benefit of the policy rate cut to customers.