Reserve Bank of India [RBI] kept interest rates unchanged at 8 per cent in Governor Raghuram Rajan's  first monetary policy announcement after a change in government in the centre. However the Central Bank has cut Statutory Liquidity Ratio [SLR] by 0.50 basis points from 23.0 percent to 22.5 percent, which means banks can now lend more. This SLR cut is effective from June 14.

Since taking charge as RBI Governor Raghuram Rajan raised interest rates on two occasions contrary to market expectation. Modi government which got mandate to revive the economy has disappointed the investors as RBI kept the rates unchanged.

The Stock markets are trading positive with RBI's decision.

(AW: Vamshi)