The Reserve Bank of India (RBI) has kept key lending rates unchanged. The re-purchase rate remains unchanged at eight percent, which automatically keeps the reverse re-purchase rate at seven percent.
Delhi Chief Minister Sheila Dikshit announced a withdrawal of five percent value added tax (VAT) levied on CNG. As a result, the price of CNG in the capital will remain unchanged at INR35.45 a kg. The withdrawal comes after protests from legislators from both the ruling Congress and the opposition to levy of five percent VAT on CNG.
RBI also said rate cuts in the future would depend on how soon inflation came down to acceptable levels.