RBI keeps key interest rate unchanged

Mumbai : RBI today kept the key interest rate unchanged, on the expected lines, but raised the inflation forecast for remainder of the current financial year to 4.3- 4.7 per cent.

The 6-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, in its fifth bi- monthly review, kept repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent.

It said the reason for the decision was "achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth".The central bank kept the economic growth forecast unchanged at 6.7 per cent for the fiscal ending March 31.