The Reserve Bank of India (RBI) Governor Raghuram Rajan kept the benchmark repo rate unchanged at a five-year low of 6.5 per cent, reverse repo rate at 6.00 per cent and CRR at 4%.

The RBI plans to set interest rates are depend on the retail inflation. The decision was widely expected as retail inflation increases to 5.39 per cent in April from 4.83 per cent in March.   

Dr Rajan said in a statement, that, "The inflation surprise in the April reading makes the future trajectory of inflation somewhat more uncertain. Incoming data show a sharper-than-anticipated upsurge in inflationary pressures emanating from a number of food items (beyond seasonal effects), as well as a reversal in commodity prices,"

The central bank aims to bring retail inflation down to 5 per cent by March 2017.

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Nandini