Reserve Bank of India Governor Raghuram Rajan, will hold his last monetary policy meet on Tuesday. Rajan will leave office on 4 September competing his 3-year term at the Mint Road. That marks the end of, arguably, one of the most eventful tenures of any governor served the Indian central bank’s 81-year old history. Although the governor is famous for throwing up surprises, but it is unlikely that he will slash interest rates this time around. Tuesday's money policy review holds significance as it comes in the backdrop of a global economic situation that is in a flux and mixed signals on the domestic economy. 

Rajan, a former chief economist at the International Monetary Fund, will depart the central bank in September after a three-year stint, the shortest of any central bank chief in India since at least the early 90s. 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. "We are expecting that there will be no change in rate because vegetable prices are on the rise... It will take a few months for the vegetable prices to come down when the kharif crops come into the market," SBI Chairperson Arundhati Bhattacharya said.