Basu: RBI should think out of the box - TV

NEW DELHI (Reuters) - The Reserve Bank of India, which reviews monetary policy on Friday, should "think outside the box", the chief economic adviser to the finance ministry told CNBC TV18 on Tuesday.

"We live in a very unusual world where some countries have very, very low interest rates whereas other countries have high interest rates so we must think outside the box in terms of monetary policy and that is what I would stress to the Reserve Bank of India," Kaushik Basu said.

Despite industrial output growth slumping to a near two-year low in July, inflation data for August to be released on Wednesday is expected to sway the RBI to raise rates this week for a 12th time since March 2010.

The wholesale price index in August probably was rose 9.6 percent, a Reuters poll showed, well above the central bank's comfort zone of 4 to 4.5 percent.

(Reporting by Abhijit Neogy; Editing by Ranjit Gangadharan)