RBI keeps interest rates, CRR unchanged in quarterly policy review

The Reserve Bank of India (RBI) on Tuesday announced its quarterly policy keeping key rates, including the interest rate and the cash reserve ratio (CRR) unchanged.

Keeping the Repo Rate at eight percent and the CRR at 4.25 percent, the bank, however, hinted at a rate cut in future after moderation in inflation.

The RBI said that with inflation easing, the monetary policy would focus on removing threats to growth, and the biggest risk to growth stems from politico-economic considerations.

The bank also stated that inflationary pressure is moderating, but high food and commodity prices continue to remain a risk.

The RBI is slated to announce the third quarter policy review on January 29.