Reserve Bank of India (RBI) has decided to keep all the key rates unchanged in its mid-quarter policy review announced today. The cash reserve ratio (CRR) has also been kept unchanged at 4.75 per cent while the policy repo rate retained at 8 per cent. Consequently, the reverse repo rate will remain unchanged at 7 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9 per cent.In its statement, the Reserve Bank said that it had frontloaded the policy rate reduction in April with a cut of 50 basis points. However, it said that further reduction in the policy interest rate at this juncture, rather than supporting growth, could worsen inflationary pressures.The RBI said that the Euro debt problem has continued to weigh on the global recovery. It added that while slowing global growth has dampened commodity prices, heightened risk aversion and the resultant slowing of capital flows will have a significant adverse impact on emerging and developing economies (EDEs), including India.India's economic growth skidded to 5.3% in the March quarter. RBI said that deceleration in industrial production from the supply side and weak investment from the demand side have, in particular, contributed to the growth slowdown. The WPI rate of inflation rose to 7.6% in May as against 7.2% in April, 2012. Primary food articles inflation rose from -0.7 per cent in January to 10.7 per cent in May largely due to a sharp increase in vegetable prices. The Central bank said that the performance of the south-west monsoon will also play a role in determining inflationary conditions over the course of the current year.In order to help export sector, RBI has raised limit of export credit refinance from 15 per cent of outstanding export credit of banks, to 50 per cent. According to the Central Bank, this will further augment liquidity and encourage banks to increase credit flow to the export sector. The decision will potentially release additional liquidity of over 30,000 crore rupees, equivalent to about 0.5 per cent of reduction in the CRR. The RBI said that management of liquidity remains a priority. It added that the evolving growth-inflation dynamic will continue to influence the Reserve Bank's stance on interest rates. The Central bank said that core inflation has moderated, reflecting demand conditions and lower pricing power. However, both headline and retail inflation rates are rising, which have a bearing on inflation expectations. RBI said that future actions will depend on a continuing assessment of external and domestic developments that contribute to lowering inflation risks.