The monetary policy committee (MPC) of Reserve Bank of India decided to hold the key policy rate unchanged as it sees risks to inflation.
Consequently, the repo rate, at which it lends to banks, will stand at 6 per cent. The reverse repo, at which RBI borrows from banks will continue to be at 5.75 per cent.
The bank lowered to 6.7 per cent the economic growth projection for 2017-18 from its August forecast of 7.3 per cent in view of issues with GST implementation and lower kharif output estimates.
RBI also indicated a rise in inflation. It said the inflation is expected to rise from its current level and range between 4.2-4.6 percent in the second half of this year.