RBI keeps key rate unchanged as inflation remains a concern

With poor monsoon and food inflation continuing to remain a worry, the Reserve Bank today kept key policy rate unchanged, giving no respite either to borrowers or India Inc.

RBI Governor Raghuram Rajan, however, lowered the Statutory Liquidity Ratio, the portion of deposits that banks are required to keep in government bonds, by 0.5 per cent to unlock about Rs 40,000 crore into the system.