RBI retains key lending rates

Inflation, rupee may force RBI to keep rates on holdMumbai: The Reserve Bank of India (RBI) in its third bi-monthly monetary policy review Tuesday for fiscal 2014-15 decided to keep key lending rates to commercial banks unchanged.

The RBI has kept its repo rate (at which it lends money to commercial banks) unchanged at 8 percent.

This is the third time that RBI Governor Raghuram Rajan kept interest rates unchanged.

The cash reserve ratio (CRR) was also kept unchanged at 4 percent.

The statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must keep with the RBI, was cut by 0.5 percent to 22.0 percent of their net demand and time liabilities (NDTL) with effect from August 9, 2014.

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