India's central bank on Monday decided to keep its key interest rates steady as widely expected by economists as weak currency limited its room for rate manoeuvre.
The Reserve Bank of India, led by Governor Duvvuri Subbarao, maintained its repo rate to 7.25 percent and the reverse repo rate at 6.25 percent.
The repo rate is the rate at which the central bank lends to banks and the reverse repo rate is the rate at which it accepts deposits from banks.
The central bank has reduced its key rates thrice this year to revive the flagging economic growth.
The RBI today maintained its cash reserve ratio, or CRR, at 4.00 percent. The bank last slashed the CRR by 25 basis points in January.
The inflation outlook will be influenced by concerted efforts to break food inflation persistence, it said. The bank expects softer global commodity prices and measures to curb gold imports to moderate the current account deficit in 2013-14.
The bank said it stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments.
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