Reserve Bank of India, RBI, has kept its key policy rates unchanged in its third bi-monthly monetary policy review with Governor Raghuram Rajan saying that the headline inflation is at elevated levels and banks are yet to pass on the full benefits of previous rate cuts.<br/><br/>In Mumbai, RBI announced that repo rate at which the RBI lends to the system, will remain unchanged at 7.25 per cent. The cash reserve ratio (CRR) which is the proportion of deposit banks have to park with the central bank, will remain at 4 per cent, it announced.<br/><br/>Inflation in June rose to an eight-month high of 5.4 percent, while the overall wholesale price index based inflation was at minus 2.4 percent in the same month. RBI in its policy statement trimmed consumer inflation forecast for January-March 2016 by 0.2 percent and said that growth was beginning to look up gradually.<br/><br/>Meanwhile, central bank has retained its growth target at 7.6 per cent for the current fiscal year. It said that hardening of inflation, excluding food and fuel, is most worrisome.<br/><br/>RBI Governor used strong words against banks for holding on to rates, saying banks have only cut 0.30 per cent as against RBI's cut of 0.75 per cent this year. The RBI governor said significant uncertainty on the factors influencing the monetary policy will be resolved in the coming months, including persistence of high inflation and better than expected monsoon.<br/><br/>RBI informed that the fourth bi-monthly monetary policy statement will be announced on September 29, 2015.