The Reserve Bank of India on Tuesday kept key interest rates unchanged in the fifth bi-monthly monetary policy review. The RBI status quo was widely anticipated by the market participants. Repo and reverse rates stood at 6.75% and 5.75% respectively. At the same time, cash reserve ratio (CRR) and statutory liquidity ratio (SLR) retained at 4% and 21.5% respectively.

Commenting on the RBI policy, Arundhati Bhattacharya, chairman, SBI said,' RBI's announcement in the RBI Fifth Bi-Monthly monetary policy decision to keep the repo rate unchanged is on expected lines. Today's policy undertone has leaned towards the neutral-to-dovish side. Governor's indication of being accommodative policy sends a positive signal for Indian economy.'

The RBI governor Raghuram Rajan in policy review today said, 'The Reserve Bank will use the space for further accommodation, when available, while keeping the economy anchored to the projected disinflation path that should take inflation down to 5% by March 2017.'

The central bank will shortly finalise the methodology for determining the base rate based on the marginal cost of funds, which all banks will move to, said Rajan.

On new methodology for base rate, SBI chief said, 'The guidelines on the base rate calculation based on marginal cost of funds will be watched and appropriate actions will be taken on the same.'

'Overall with CAD and inflation targets well within control and Q2 GDP at 7.4%, the Indian economy seems headed for a good financial year ahead,' Bhattacharya concluded.