New Delhi, August 8 (KNN) Reserve Bank Governor Raghuram Rajan in his last monetary policy tomorrow may keep interest rate static as retail inflation continues to be above the comfort zone, says the expert.

This is going to be the last bi-monthly monetary policy to be decided by the central bank Governor as the broad-based 6-member panel may take over the job before the next review on October 4.

Talking to KNN, renowned economist Akash Jindal said that the government is targeting  four per cent  inflation rate by 2021. "So what we can make out here that the government’s priority is also to reduce the inflation."

Explaining further, he said that there are two options, one is to have complete focus on inflation reduction and other is to have focus on growth and interest rate reduction. But right now the way government has come out with inflation policy where they are saying that till 2021 government will maintain a four per cent inflation rate with one or two plus or minus.

“since RBI is also pursuing anti-inflationary stand and the government is targeting the same then what I can expect that it would be a status quo”, he assumed.

In conjunction with naming its 3 members on the Monetary Policy Committee, the government is also likely to name a successor to Rajan sometime this month. The government announced last week that it would like the RBI to focus on maintaining retail inflation rate of 4 per cent for the next five years, based on which the new interest rate setting panel would take its monetary policy decisions going forward. (KNN Bureau)