RBI Governor Raghuram Rajan to Announce Policy Review Today

Mumbai: Amid speculations over his second term as the Governor of Reserve Bank of India, Raghuram Rajan will announce the bi-monthly monetary policy on Tuesday. Reports are that the Governor has planned to maintain the status quo and is likely to keep the repo rate unchanged at 6.5 pent for the banks.

Sources of EXIN Times has asserted that, “He cited higher upside risks to inflation trajectory for keeping the rates unchanged, but said the  central bank will remain accommodative provided data are supportive.” Rajan will chair the ‘penultimate police review’ while waiting is also relentless among investors who intends to her his name as the RBI Governor for the second term, starting on this September.

The monetary policy announcement in this tem, as announced by Rajan, emphasized upon subdued investment rates, creating jobs for the younger generation, oil price fall. While the policy released on march ‘cemented’ India’s name as world’s fastest growing large economy, accelerated inflation, recorded in April, pointed the shortcomings, EXIN Times reported.

While media reports upsurge speculations due to his extension, Rajan on Monday on a post monetary policy press meeting said: “I have a prepared statement for that. As far as the question of my continuing with this position after September 4 goes, it will be cruel to spoil the fun that the press is having with all its speculation.”

Rajan is facing continuous attacks from across the country, the most from BJP leader Subramanian Swamy, who even has wrote a letter to the Prime Minister urging not to extend Rajan’s term. However, Prime Minister Narendra Modi replied: “I don't think this administrative subject should be an issue of interest to the media. Besides, it will come up only in September,” Modi said recently at Wall Street when asked about Rajan’s extension.