The Reserve Bank of India, RBI has kept key rates unchanged to keep inflation under check. The repo rate, at which the RBI lends to banks, has been retained at 8 per cent. The reverse repo rate will also remain unchanged at 7 per cent. The statutory liquidity ratio, SLR for banks has been cut by 0.5 per cent to 22.5 per cent with effect from June 14. The measure unlocks about 40,000 crore rupee funds by reducing the amount of deposits banks are required to park in government securities. The cash reserve ratio for banks has been kept unchanged at 4 per cent.This is the second time in a row that interest rates have been left unchanged amid demands for moderation to spur growth.
News On AIR | June 3, 2014 8:41 PM
RBI keeps key rates unchanged to keep inflation under check