At his last monetary policy review on Tuesday, RBI chief Raghuram Rajan left key interest rates unchanged, flagging upside risks to the inflation target. India’s statistics office will release retail inflation data and industrial production data at 1200 GMT on Friday. While Prime Minister Narendra Modi’s government has yet to pick a successor, it has bound the next governor with Rajan’s retail inflation target of 4% with a plus or minus 2% band for next five years. Morgan Stanley reckons a higher rate could push up retail inflation by as much as 0.70 percentage points. New Delhi: Soaring food prices in July probably kept India’s headline inflation above the Reserve Bank of India’s (RBI) near-term target, underscoring the challenge facing the next central bank governor.

Source: Mint August 12, 2016 06:14 UTC