On Monday, data procured from the Government of India has revealed that the country’s industrial out for the month of July stood 3.3% lower than last year’s. However, the industrial output for the month of June stood stable.

Although the industrial output was lower than expected, the manufacturing output rose significantly by 2.3% in July. It is believed that because of the slower growth may force RBI to push the rates on the coming Friday.

If the RBI raises the rates then there is possibility that the INR OIS rates to go down. This is for the last time when RBI would be inflicting a rise on the rates. Since March 2010, the RBI has raised rates 11 times with the hope of fighting against inflation.

The continuous rise in the borrowing costs has impacted the consumer index significantly. Because of the rising borrowing costs, the economy of India has expanded only 7.7% from April to June. Besides, the HSBC Markit Purchasing Managers' Index also fell by 52.6 in August. Amidst the falls, rise was seen in the Exports and India's food price index at 44.2% and 9.55%, respectively. All the measures were taken to combat the inflation, but they all failed as inflation rose by another 9.55%.