Rajan's last policy leaves key rates unchanged

RBI Governor Raghuram Rajan left key interest rates unchanged at his last policy review on Thuesday. Repo rate at which RBI lends to the banks has been retained at 6.5%.  The reverse Repo Rate which is paid to banks has been maintained at 6%. The Cash Reserve Ratio will be at 4%  Meanwhile, Governor Rajan was hopeful that banks will transmit the cut in interest rate by RBI over the last few months to the consumers. On

growth, RBI maintained its projection of 7.6 per cent for finanical year 2016-17 but said that there is Upside risk to 5 per cent inflation target for March 2017.

Inflation rose to 5.8 per cent in June. On GST the central bank said its implementation will boost business sentiment and eventually investment. 

This is the last bi-monthly monetary policy to be decided by the central bank Governor as the broad-based 6-member panel may take over the job before the next review on October 4. 

This is also RBI governor raghuram rajan's last policy.The tenure of Rajan, a celebrated economist and a Professor at Chicago Booth School, was marked by a falling inflation, increasing reserves, stable currency and rising growth.