July 28, 2009
The Reserve Bank of India (RBI),India's central bank, Tuesday kept the key interest rates unchanged, apparently due to concern over inflation.
RBI Governor D. Subbarao said in a statement issued in Mumbai: "It is worth reiterating that the Reserve Bank will maintain an accommodative monetary stance until there are definite and robust signs of recovery."
The central bank has raised its inflation forecast for this fiscal to 5 percent, against 4 percent earlier.
In the policy unveiled by the central bank in April, both the repo and the reverse repo rates were cut by 25 points each, while statutory liquidity ratio and the cash reserve ratio were kept unchanged.
The repo rate, now standing at 4.75 percent, is the interest charged by the RBI on borrowings by the commercial banks of the country.
The reverse repo rate, standing at 3.25 percent, is the interest charged by commercial banks on borrowings by the central bank.
The central bank has also raised growth forecast for the country's economy to 6.5 percent from earlier projection of 5.7 percent.