With an aim to achieve its medium-term target of achieving CPI inflation of 4% and to support the economic growth, the Reserve Bank of India (RBI) governor Urjit Patel along with its monetary policy committee (MPC) members on Thursday kept the key policy rate unchanged at 6.25%.

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However, the central bank has increased the reverse repo rate under the liquidity adjustment facility (LAF) at 6% from 5.75% earlier. Reverse repo rate is the rate at which banks borrow from the central bank.

It has kept the marginal standing facility (MSF) rate and the bank rate at 6.50%.

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