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The Reserve Bank of India (RBI) may maintain the status quo with regard to the key interest rate in its monetary policy review on Tuesday in view of the need to curb inflation, which has remained stubbornly high. RBI Governor Raghuram Rajan on Sunday called on Prime Minister Narendra Modi and is believed to have discussed the macroeconomic situation.
Rajan kept the policy rate unchanged at eight per cent at the previous review on April 1 as inflation, especially of food items, hovered at over eight per cent. Food inflation in April stood at 9.66 per cent and retail inflation at 8.59 per cent.
The bi-monthly policy review on Tuesday is the first after Modi assumed office on May 26.
