The Reserve Bank of India (RBI) on Tuesday kept key policy rates including the cash reserve ratio (CRR) unchanged. While the repo ratewas maintained at 8%, CRR was also maintained at status quo of 4.25%. 

D Subbarao maintained that risks to inflation remain and emphasised the need to shift increasingly towards growth. 

The central bankBSE -0.36 % has been under enormous pressure to cut rates from industry and thefinance ministry, both of which believe a monetary easing at this stage will lift spirits and ultimately aid in growth reviving. 

Declaring that the economic slowdown had "bottomed out" and inflation was "moderating", the government has predicted growth rebounding in the second half. 

In its mid-year economic analysis presented in Parliament on Monday, the finance ministry said it expected GDP growth of between 5.7 per cent and 5.9 per cent for the year, which is lower than the 7.6 per cent budgeted but higher than 5.4 per cent achieved in the first half. 

This, the government said, meant the growth rate for the second half would be "close to around 6 per cent", as it made an undisguised pitch to RBI to oblige by cutting rates. "To achieve this, both fiscal and monetary policies, however, would need to be supportive to sustain investor confidence," the review said. (Economic Times)