Rajan had overturned the majority opinion of the members and chose to hold the rates at the last monetary policy review in October.
Broader markets underperformed indices with BSE Midcap down 0.43% while the Smallcap index fell 0.07%.
Rajan has been facing continuous attacks by Bharatiya Janata Party MP Subramanian Swamy and some other sections, who have alleged that he has failed to lower interest rates and boost the economy
The official data on April-June GDP will be released on August 31.
Industrial production was seen growing 1.8 per cent from a year earlier in July, slower than June's 3.4 per cent increase, according to the median consensus in a poll of 31 economists.
Almost 50% respondents said Modi has not done enough to check prices of essential commodities.
Here are the key decisions announced by the Reserve Bank of India on Thursday.
The WPI number follows retail inflation (CPI) data, which had slipped to a record low of 3.78 per cent in July.
The breadth, indicating the overall health of the market, was slightly positive
Raghuram Rajan said a six-member monetary policy committee will decide on interest rates.
The central bank, however, warned that the downside risks to growth could play out if global recovery slows.
The rupee had gained seven paise to close at 61.15 on Friday on suspected RBI intervention in the forex market.
Raghuram Rajan, who was Chief Economic Advisor in the Finance Ministry before taking over as RBI Governor on September 4, is scheduled to announce the next mid-quarter policy review on December 18.
Costlier fruits and vegetables such as onions and tomatoes pushed retail inflation to a nine-month high of 11.24 per cent in November, making it harder for the Reserve Bank to lower interest rates.
RBI has pegged the GVA growth of 7.6 per cent for the current fiscal and 7.9 per cent the year after
The Centre has decided to create a buffer stock of 350,000 tonnes.
Inflation in India probably edged up in October as food prices climbed while weak demand is expected to have hurt factory output growth.
Retail inflation measured by the consumer price index has risen sharply across food and non-food constituents, including services, keeping inflation expectations high, the Reserve Bank of India said in its Second Quarter Review of Monetary Policy 2013-14.
El Nino, which refers to warmer-than-average sea surface temperatures in the central and eastern tropical Pacific Ocean, will likely to keep CPI inflation up at 8-10 per cent in the second half of 2014 and will pose a 50-70 basis point risk to this fiscal's growth expectation, the report by financial services major Bank of America Merrill Lynch said.
Analysts expect inflation to peak in the first half of 2016-17 and moderate, thereafter, on the back of positive impact of monsoons
The rupee resumed lower at 61.15 per dollar as against the last weekend's level of 61.07 at the Interbank Foreign Exchange market and hovered in the range of 61.15 and 61.28 before quoting at 61.24 per dollar at 1030 hours.
Issuers are currently not comfortable with the bids they have been getting for their bond offerings.
This is the biggest one-day fall in the rupee since August 3, 2016
The Indian economy's election-year syndrome cannot be ignored, says A K Bhattacharya.
The fiscal deficit of the Centre remains a worry, running at over 6.5 per cent of GDP in April-September 2014, mainly because of revenue shortfalls from exaggerated projections in the government's July Budget and despite the relief on subsidies from lower oil prices.
There is a narrow chance that the central bank may cut rates in the future, according to a poll of 15 economists and treasurers.
Businesses are still taking time to adjust in the new tax regime, which would weigh on growth rates for the financial year closing today.
Food prices rose 8.64 per cent year-on-year last month, slower than an annual rise of 9.90 per cent in March.
The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 per cent reduction in rates.
The global financial services major had earlier said that the central bank would keep its policy rates on hold.
Fall in both WPI and CPI inflation to pressure RBI, say analysts
The rupee had edged higher by four paise to end at 61.51 against the American currency in yesterday's trade on fresh selling of dollars by banks and exporters.
The dollar's weakness against other currencies overseas and a higher opening in the domestic equity market supported the rupee, forex dealers said.
Steady US job growth poses gruelling wage riddle.
Lower interest rates needed to boost manufacturing, officials say.
With the setting of MPC, the interest rate setting powers would move from RBI Governor to the panel.
The policy will be presented in the backdrop of rising inflation.
Voices from the Treasury are clamouring for lowering rates as this would boost demand.
RBI policy surely cannot impact agflation, in any case.
Twelve of the 21 economists polled doubted whether the government could roll out the tax before the next fiscal year begins in April.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances