Reserve Bank Governor Raghuram Rajan kept key rates unchanged, as widely expected, at his last policy review before he bids adieu early September. Inflation is expected to stay within the RBI's target zone but recent increase in food prices and a pick-up in economic growth led the RBI to stay put, Rajan said. Rajan has lowered rates by 150 basis points since January last year, bringing the policy repo rate down to 6.5 percent, and he has argued that the benefits would have been far greater if banks had been less reluctant to lower lending rates. In his three-year stint, the outgoing Reserve Bank chief has been able to refuel growth, prep up reserves, stabilise the currency, cool down inflation and initiate a number of reforms in the banking space.
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