Reserve Bank of India, RBI, has kept key interest rate unchanged . This is the third time in a row that interest rates have been left unchanged amid demands for moderation to spur growth. The bank has maintained that monsoon still remains a worry and posing risk to inflation management.
In its bi-monthly monetary policy review, announced in Mumbai today, RBI kept inflation target at eight per cent by January 2015 and six per cent by January 2016. The Central Bank has pegged Gross Domestic Product growth rate for current fiscal at 5.5 per cent, It was projected at 5-6 per cent range in April. The cash reserve ratio of scheduled banks will remain unchanged at 4 per cent of net demand and time liabilities. RBI also reduced Statutory Liquidity Ratio by 0.5 per cent to 22 per cent.