The Reserve Bank of India has kept the key repo rate unchanged at 6.75% at the first bi-monthly  monetary policy of 2016 that has been announced today.

It also kept the cash reserve ratio (CRR) unchanged at 4%. It has also left the statutory liquidity ratio unnchanged.

The Reserve Bank in its monetary policy statement said that the Indian economy was prodding along well, but it would take into consideration steps taken in the Budget that would boost growth while keeping inflation in check.

“The Indian economy is currently being viewed as a beacon of stability because of the steady disinflation, a modest current account deficit and commitment to fiscal rectitude,” the bank said.

“This needs to be maintained so that the foundations of stable and sustainable growth are strengthened.”