RBI keeps interest rates unchanged at 6.50 per cent
June 07, 2016 11:07
Just in: RBI keeps policy rate unchanged at 6.50 per cent.
As expected, the Reserve Bank of India has kept its policy interest rate unchanged at a five-year low of 6.50 per cent on Tuesday, while signalling the prospect of another cut later this year if monsoon rains dampen upward pressure on food prices.
RBI Governor Raghuram Rajan, a much admired former International Monetary Fund chief economist, could be chairing his penultimate policy review, with investors waiting to hear whether the government plans to extend his three-year term beyond September.
However, market buzz is that he is likely to be offered another two years, should he want it, but markets were spooked after a regional newspaper cited sources close to Rajan saying he could walk away.
As expected, the Reserve Bank of India has kept its policy interest rate unchanged at a five-year low of 6.50 per cent on Tuesday, while signalling the prospect of another cut later this year if monsoon rains dampen upward pressure on food prices.
RBI Governor Raghuram Rajan, a much admired former International Monetary Fund chief economist, could be chairing his penultimate policy review, with investors waiting to hear whether the government plans to extend his three-year term beyond September.
However, market buzz is that he is likely to be offered another two years, should he want it, but markets were spooked after a regional newspaper cited sources close to Rajan saying he could walk away.
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