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The repo rate at which the RBI lends to the system has been retained at 7.25 per cent, and the cash reserve ratio will also be held unchanged at 4.0 per cent, in line with market expectations.
Releasing its Mid-quarter review of Monetary policy 2013-2014, RBI said that there are upside risks to inflation on rupee weakness and increases in administered prices.
The trade gap has surged due to high gold imports, it said.
RBI has cut the interest rate three times this year.
The latest action was on May 3, when the central bank cut its repo rate by 0.25 per cent to 7.25 per cent.