Reserve Bank of India governor Raghuram Rajan today kept key policy rates unchanged. So the RBI's short-term lending rate, or repo rate, was retained at 6.5 percent, and the Cash Reserve Ratio at 4 per cent. In the bi-monthly monetary policy, the RBI governor said data since the April policy announcement show a sharper-than-anticipated upsurge in inflationary pressures emanating from a number of food items, and a reversal in commodity prices. He said rising crude prices and implementation of the seventh pay commission award are key risks. But Raghuram Rajan added that the central bank's policy stance will remain accommodative, provided data are supportive. The RBI governor observed that the forecast of an above normal monsoon by the met department, various supply-side management steps, and introduction of the electronic national agriculture market trading portal should help moderate unanticipated flaring up of food inflation. He retained the January 2017 inflation target at 5 per cent, with an upside bias. Noting that domestic conditions for growth are improving gradually, driven mainly by consumption demand, Raghuram Rajan retained the GDP forecast at 7.6 percent for the current fiscal. He said there are signs that corporate performance is improving, and there has been a pick-up in capacity utilisation and order books. Rajan also said more monetary transmission to support the revival of growth is critical. The RBI will also soon review implementation of the Marginal Cost Lending Rate framework by banks.