RBI keeps key rates unchanged; inflation forecast increased.

Johnson Cherian.

The Reserve Bank of India on Wednesday announced that it is keeping key interest rates unchanged at 6 per cent. The six-member Monetary Policy Committee headed by RBI Governor Urjit Patel has also raised the inflation forecast to 4.3-4.7 per cent in the third and fourth quarters of the current fiscal.

Mr. Patel said that the MPC has taken into account the “upward pressure on food and fuel prices.”

“There has been significant resource mobilisation in the primary capital market,” he said.

The Central Bank will also rationalise merchant discount rates, a moved aimed at widening the network of merchants using point of sale terminals.