Reserve Bank of India (Governor) Raghuram Rajan on Tuesday kept the main policy interest rate unchanged at 6.5% in line with analyst’s expectations. The announcement came after the bi-monthly policy meetings.

The RBI governor has made it clear that reverse repo rate will remain unchanged and the CRR or Cash Reserve Ratio of scheduled banks will remain untouched at 4%.

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He spoke about the recent controversy going on his appointment as RBI governor for the second term. However, he has kept everyone in dark.

“It would be cruel of me to spoil the fun the press is having.The government and the incumbent decide on the extension of an RBI Governor's tenure," said Rajan. "You will know when there is news,” he said.

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Bank has said that the inflation rate of April has made the future inflation rates somewhat uncertain and the future implementations such as Seventh Pay Commission and rising crude prices pose and upside risk to inflation.

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Rajan said, “We will have to figure out ways to attain 5% inflation target set for Jan 2017.”

Citing corporate profits and surge in consumption, the bank has retained the growth projection of 7.6 percent for the year 2016-17.

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By Prajakt K.