MUMBAI (Reuters) - India's central bank governor Raghuram Rajan kept the repo rate unchanged at 6.50 percent at his final policy review on Tuesday after inflation hit a nearly two-year high.
The decision had been widely expected after consumer inflation accelerated to 5.77 percent in June, near the top of the Reserve Bank of India's 2-6 percent range, and above its target of 5 percent by March next year.
The respected former International Monetary Fund chief economist is due to step down on Sept. 4 after a three-year term. The government has still to pick a successor.
(Reporting by Suvashree Dey Choudhury and Rafael Nam; Editing by Simon Cameron-Moore)