RBI maintains status quo in Rajan’s last meet – BBH

Research Team at BBH, notes that the Reserve Bank of India left rates steady at 6.5%, as expected but the tone shifted to a more neutral stance. 

Key Quotes

“This was Governor Rajan’s final meeting, and so gave his potential successors more leeway to set their own course.  Prime Minister Modi is likely to replace Rajan with someone more dovish.  If so, rates could be cut at the next meeting October 4. 

India reports July CPI and June IP on Friday. The former is expected to rise 5.9% y/y while the latter is expected to rise 1.5% y/y.”