RBI governor maintained status quo on his policy stance.
The governor said that he does not see further tightening in the near term.
He cautioned that "Lead indicators do not point to any sustained revival in industry and services as yet."
RBI expects FY15 growth in the range of 5-6% with downside risks.
The RBI also reduced the availability of overnight funds from its repo window for banks and increased the amount that banks may borrow from its term repo window in a bid to reduce lenders' reliance on short-term central bank funding.
We see little economic case for lower rates in 12months, unless the global and Indian economies take a yurn for the worse and it becomes absolutely necessary to provide monetary stimulus to sustain even 5% growth trajectory.
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