RBI keeps repo rates unchanged

As expected the Reserve Bank of India has kept the key repo rate unchanged at 8% in its fourth bi-monthly monetary policy.

The RBI has kept the key rates unchanged despite the market’s demand of reduce in rates to boost struggling economy.

The cash reserve requirement of banks at 4 per cent. The statutory liquidity ratio (SLR) has also been retained at 22 per cent.

Announcing the monetary policy in Mumbai on Tuesday, the RBI Governor Raghuram said “There are risks from food price shocks as the full effects of the monsoon’s passage unfold, and from geo-political developments that could materialise rapidly.”

“The future policy stance will be influenced by the RBI’s projections of inflation relative to the medium term objective of 6 percent by January 2016, while being contingent on incoming data,” Rajan added.

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