New Delhi, India (BBN)-The Reserve Bank of India (RBI) in the bi-monthly monetary policy review on Tuesday kept the repo rate unchanged at 8 percent as per the street's expectations.

The Cash Reserve Ratio (CRR) was also unchanged at 4 percent of net demand and time liabilities (NDTL), reports Business Standard.

However, the Statutory Liquidity Ratio (SLR) was reduced by 50 basis points to 22.5 percent of banks NDTL with effect from the fortnight beginning June 14.

Besides, RBI also reduced the liquidity provided under the export credit refinance (ECR) facility from 50 percent of eligible export credit outstanding to 32 percent with immediate effect.

The SLR cut will be effective June 14.

RBI also introduced a special term repo facility of 0.25 percent of NDTL to compensate fully for the reduction in access to liquidity under the ECR.

RBI shall also continue to provide liquidity under 7-day and 14-day term repos of up to 0.75 percennt of NDTL of the banking system.

In April Consumer Price Index (CPI) inflation accelerated to a three-month high of 8.59 percent, mainly driven by higher food prices compared with 8.31 percent in March.

At 11:05 am the rupee was trading at Rs 59.20 compared with previous close of Rs Rs 59.17 per dollar.

The yield on the 10-year benchmark bond was trading at 8.70 percent compared with previous close of 8.66 percent.

RBI is expecting a marginal improvement in economic growth to 5-6 percent in FY15. RBI reiterated CPI inflation target of 8 percent by January 2015 and 6 percent by 2016.

Today's bi-monthly policy review is the first after Prime Minister Narendra Modi assumed office on May 26.

The RBI has increased the key repo rate three times since Rajan took over as Governor in September.

BBN/AS-03June14-12:00pm (BST)