RBI’s outgoing Governor Raghuram Rajan holds interest rates at 6.50% in his last policy review

Governor of Reserve Bank of India (RBI) Raghuram Rajan maintained status quo and kept the repo rate unchanged at 6.50 per cent.

The Cash Reserve Ratio (CRR) was also unchanged at 4 per cent. The reserve repo rate was also held at 6 per cent.

The food inflation is high due to uptick in prices of fruits and vegetables. The prices of pulses are also rising in India. The RBI reiterated upward risk of CPI inflation of 5 per cent. Rajan took a hawkish stance on inflation.

The RBI has taken an accommodative stance during the policy review.