RBI keeps its key lending rate unchanged at 6.25 per cent

The Reserve Bank of India (RBI) today kept its repo rate (key lending rate) unchanged at 6.25 per cent. The reverse repo rate also remained unchanged at 6 per cent in its second bi-monthly monetary policy review announced today.

The RBI, however, has slashed the Statutory Liquidity Ratio (SLR) or the percentage of deposits that banks have to park in government securities, by 0.5 per cent to 20 (rpt) 20 per cent, a move that would result increased lending by banks.

The RBI also cut the economic growth projection to 7.3 per cent for the current fiscal from 7.4 per cent earlier.