RBI leaves interest rate unchanged; tone hawkish

MUMBAI:The Reserve Bank of India has left the key interest rate or the repo rate unchanged at 6.5 per cent in the second bi-monthly review of its monetary policy on Tuesday.

RBI indicated that the risks to inflation were on the upside. “The inflation surprise in April reading makes the future trajectory of inflation somewhat more uncertain”, RBI said.

The central bank had lowered rate by 25 bps to 6.5 per cent in the last policy review in April.

RBI has reduced the repo rate by 150 bps since January 2015.

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