RBI keeps key rates unchanged, cuts SLR to 21.5 percent

The Reserve Bank of India (RBI) on Tuesday kept the key rates unchanged making the repo rate stand at 7.75 percent, while the Statutory Liquidity Ratio (SLR) has been slashed by 50 basis points to 21.5 percent.

This stance follows rate cut by RBI on 15th January to tackle disinflationary pressure. The cash reserve ratio stands at four percent. The sixth bi-monthly monetary policy statement was issued in Mumbai today by RBI Governor Raghu Rajan.

"Given that there has been no significant development on inflation and fiscal front since then (15 January) we have maintained status quo on interest rates. However, we have taken actions in a number of other directions," said RBI Governor Raghu Rajan.

"Many of these are intended to further the growth process and some are aimed to enhance stability of the system," he added.

The apex bank has forecast inflation to be around the target level of six percent by January 2016. The estimate for the real GDP in 2015-16 is expected to rise to 6.5 percent with risks broadly balanced.

RBI has also kept the Cash Reserve Ratio (CRR) of scheduled banks unchanged at 4.0 percent of Net Demand and Time Liabilities (NDTL).

The first bi-monthly monetary policy statement for fiscal year 2015-16 is scheduled on April 7, 2015.