Mumbai: The Reserve Bank of India (RBI) kept its interest rates unchanged at its third bi-monthly monetary policy review on Tuesday.
Following are the highlights of the third bi-monthly monetary policy statement by the RBI.
Key policy rate (repo) kept unchanged at 7.2 percent
Cash reserve ratio (CRR) unchanged at 4 percent
Economic recovery is still work in progress
After strong rainfall in June, July has been below par, but overall monsoon is near normal
Most worrisome is sustained hardening of inflation except food and fuel
Signs that consumption demand, especially in urban areas, is picking up
Weak global demand conditions restrained exports
Banks have passed on an average 0.3 percent interest rate cut as against RBI's 0.75 percent rate cut since January
New investment demand emanating from private sector and government remains subdued
RBI retains growth target at 7.6 percent for 2015-16
Capital infusion into PSBs will help loan growth and transmission
Fourth bi-monthly monetary policy to be announced on September 29
