India may set policy rates by panel in October: RBI's Rajan

The Reserve Bank of India may decide its interest rates through the monetary policy committee in October, outgoing RBI Governor Raghuram Rajan said on Tuesday, shortly after leaving key repo rate unchanged.

Reuters| Updated: Aug 09, 2016, 13:47 PM IST
India may set policy rates by panel in October: RBI's Rajan

Mumbai: The Reserve Bank of India may decide its interest rates through the monetary policy committee in October, outgoing RBI Governor Raghuram Rajan said on Tuesday, shortly after leaving key repo rate unchanged.

At his final policy review after inflation hit a nearly two-year high, Rajan said the policy stance remains "accommodative."

Under the changes, passed by parliament last month, a six-member monetary policy council will set interest rates by majority, with a casting vote for the central bank governor in the event of a tie.

"My hope is that the next monetary policy statement will be by the proposed monetary policy committee. The committee to select outside members of the MPC has commenced the process," Rajan told reporters at a press meet after shortly releasing the policy review.