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Key highlights: RBI keeps key rates unchanged, CRR maintained at 4 per cent

Key highlights: RBI keeps key rates unchanged, CRR maintained at 4 per cent

The Reserve Bank of India has kept key rates unchanged, saying the upside risks from food price shocks remain.

RBI Governor Raghuram Rajan (Photo: Reuters) RBI Governor Raghuram Rajan (Photo: Reuters)

In line with expectations, the Reserve Bank of India (RBI) on Tuesday decided to keep key interest rates unchanged in its fourth bi-monthly policy review.

Here are the key highlights from the central bank's policy review:

> The central bank kept repo rate unchanged at 8 per cent and reverse repo rate at 7 per cent.

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> Cash reserve ratio (CRR) unchanged at 4 per cent.

> Maintains FY15 GDP growth estimate at 5.5 per cent.

> Projects FY16 GDP growth at 6.3 per cent.

> Currently positioned to reach 6 per cent inflation target by 2016.

> Inflation may climb back to 8 per cent in January-March 2015.

> Expect 7 per cent inflation by Q4 of FY16.

> Upside risks from food socks persist.

> Inflation readings better on better-than-expected monsoon.

> Will bring SLR down as government finances improve.

Published on: Sep 30, 2014, 10:54 AM IST
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