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MUMBAI, June 3 Reserve Bank of India Governor
Raghuram Rajan kept the country's key policy repo rate unchanged
at 8 percent on Tuesday, as widely expected, with consumer price
inflation coming down this year after a series of tightening
steps by the central bank.
The central bank also took steps to increase the
availability of credit, reducing the mandatory amount of bonds
lenders must park at the RBI - called the statutory liquidity
ratio - by 50 basis points to 22.5 percent of deposits, starting
Economists in a Reuters poll had overwhelmingly expected the
RBI would keep India's policy repo rate on hold
after last tightening by a quarter percentage point in January.
Since Rajan took the helm of the central bank in September,
he has raised the repo rate by 75 basis points in a bid to tame
high consumer inflation.
(Reporting by Suvashree Dey Choudhury and Rafael Nam; Editing
by Jacqueline Wong)