As widely expected, the Reserve Bank of India, on Tuesday, kept the indicative policy rate (repo) unchanged at 8 per cent while taking measures to provide longer term liquidity in the system.

Repo rate is the rate at which banks borrow funds from the central bank.

“On the basis of an assessment of the current and evolving macro-economic situation, we have decided today [Tuesday] to keep the policy repo rate unchanged at 8 per cent,” said RBI Governor Raghuram Rajan at a a press conference here to announce the first bi-monthly monetary policy for 2014-15.

Mr. Rajan said real GDP (gross domestic product) growth was projected to pick up from a little below 5 per cent in 2013-14 to a range of 5-6 per cent in 2014-15, albeit with downside risks to the central estimate of 5.5 per cent.

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