New Delhi, June 8 (KNN) The Reserve Bank of India in its second bi-monthly monetary policy review for the year 2017-18 announced unchanged key lending rate at 6.25 per cent.

This comes in line with the expectation of the economists and experts who predicted that the key lending rate might not be altered by the Reserve Bank.

This is for the fourth time that the RBI has maintained status quo on its repo rate.

Whereas to push liquidity, the RBI reduced the Statutory Liquidity Ratio (SLR). The SLR according to the policy review released recently is reduced by 50 basis points to 20 per cent.

Also the RBI continued at 4 per cent for the Cash Reserve Ratio (CRR). Similarly the reverse repo rate under the liquidity adjustment continues at 6 percent. Likewise the marginal standing facility rate and the bank rate continues at 6.50 percent.

Announcing the unchanged key interest rate, Urjit Patel, Governor of the Reserve Bank commented on the abrupt fall in the inflation in April. He informed that the trajectory that appeared In February and March raised issues that have to be taken into consideration for the inflation projections.

Commenting on the risks, the Governor said that the risks seems to be evenly balanced. He further said that the monsoon along with the government’s policy for effective food management will be instrumental in maintaining risk checks. (KNN/ DA)