Reserve Bank of India governor, Raghuram Rajan today kept policy rates unchanged. The repo rate, or the RBI's short-term lending rate, has been left unchanged at 7.5 per cent, and the Cash Reserve Ratio has been left steady at 4 per cent. The RBI governor said, in his first bi-monthly policy review for 2015-16, that transmission of policy rates to lending rates has not taken place so far, despite weak credit offtake and front-loading of two rate cuts. Meanwhile the RBI governor nudged banks to lower their lending rates, and rejected their contention that the cost of funds remains high. He said transmission of rate cuts by banks will be his top priority. Earlier today Chiefs of major banks-SBI, ICICI and HDFC had said that lowering of interest rate will not be possible just as yet.RBI Governor Raghuram Rajan has also said that the impact of the recent unseasonal rains will be monitored closely. The apex bank expressed optimism about meeting the 6 per cent retail inflation target for January next year. And it projected 7.8 per cent economic growth for the current fiscal.