Repo rate unchanged at 6.50 per cent

The Reserve Bank of India (RBI) has kept the repo rate (the rate at which it lends funds to banks) unchanged at 6.5 per cent. RBI had cut the repo rate by 25 basis points in April this year. The key reason for maintaining the status quo has been a sharper-than-anticipated upsurge in inflationary pressures emanating from a number of food items (beyond seasonal effects), as well as a reversal in commodity prices