RBI keeps all key rates unchanged

Bringing huge disappointment to the stock and financial markets, the Reserve Bank of India (RBI) has decided to keep all key interest rates unchanged. The RBI Governor Dr Y V Reddy made this announcement on Tuesday. Repo rate will remain at 7.75 per cent. Reverse Repo will be 6 per cent. The RBI has kept the bank rate and CRR unchanged at 6 per cent and 7.5 per cent respectively. There would no changes in these rates until March 31, 2008.

By retaining its key rates, the RBI is hopeful of contain the inflation rate within 5 per cent. The GDP projection for the year 2007-08 remains the same at 8.5 per cent.