RBI keeps key lending rates unchanged | SupportBiz

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RBI keeps key lending rates unchanged

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.

The apex bank said that since the last rate cut, global macro-economic indicators have deterioratedm and that the headline inflation numbers are far above the comfort range.

"Since the RBI's annual policy statement in April, global macro-economic and financial conditions have deteriorated. At the same time, the domestic macro-economic situation too raises several deepening concerns," the apex bank said in a statement.

"While growth in 2011-12 has moderated significantly, headline inflation remains above levels consistent with sustainable growth. Importantly, retail inflation is also on an uptrend," RBI stated.

In April, Governor Duvvuri Subbarao had cut re-purchase rate by 50 basis points to eight percent, which automatically impacted the reverse repurchase rate, which dropped to seven percent from 7.5 percent.