RBI Governor Raghuram Rajan on Tuesday left interest rates unchanged.
RBI Governor Raghuram Rajan on Tuesday kept repo rate unchanged at 6.5 per cent, reverse repo rate stays at 6.00 per cent. Cash Reserve Ratio (CRR) also remain unchanged at four per cent.
The RBI said April inflation reading makes its future trajectory somewhat more uncertain. The central bank has also retained growth projection at 7.6 per cent for 2016-17 citing corporate profits and surge in consumption.
RBI further said rising crude prices and implementation of 7th pay commission pose upside risk to inflation. It will soon review implementation of marginal cost lending rate framework by banks.
The Raghuram Rajan-led RBI said rising crude prices and implementation of 7th pay commission pose upside risk to inflation.