Mumbai, Aug 5: The Reserve Bank of India (RBI) in its third bi-monthly monetary policy review on 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.
Rajan has raised interest rates three times since he took office in September 2013, even as economic growth slowed to decade-low rates. Rajan has set a target of bringing down consumer price inflation to 8 percent by the end of the fiscal and to 6 percent by the next fiscal.