As predicted, RBI leaves key rates unchanged

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RBI
Mumbai, Oct 27: As predicted, the Reserve Bank of India (RBI) has left the key rates unchanged. According to the latest media reports, the RBI has kept the repo, reverse repo and CRR rates unchanged.

In the mid-term review of 2009-10 monetary policy on Tuesday, Oct 27, the central bank decided to leave the repo rate, which is the rate which it lends short-term funds to banks, at 4.75 per cent, and the reverse repo rate, the rate through which which it absorbs liquidity from the banking system, at 3.25 per cent.

Apart from this, the cash reserve ratio (CRR), which is the proportion of deposits banks have to keep with the RBI in reserve, remains unchanged at 5 per cent.

However, the inflation target was raised to 6.5 per cent from 5 per cent. The bank also increased the SLR from 24 per cent to 25 per cent.

The FY10 GDP growth rate remains at 6 per cent.

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