No hike in rates: RBI

The Reserve Bank of India (RBI) today left all the key interest rates unchanged in the first quarterly review of the monetary policy.

"In sum, the Reserve Bank's current assessment of macroeconomic outlook and the overall stance remains broadly unchanged from the annual policy Statement. It is apparent that there are several global uncertainties but there are domestic factors which indicate a confidently growing economy in a stable environment. While global factors are getting to be increasingly significant for India, the domestic factors still dominate and the latter point to favouring stability to maintain growth momentum at this juncture while being ready to respond to evolving circumstances.

"Accordingly, the overall stance of monetary policy for the remaining part of the year 2005-06 will continue to be as set out in the annual policy Statement of April 2005, but the Reserve Bank would respond, promptly and effectively, to the evolving situation depending on the unfolding of the risks," the statement released today said.