Upward revision in RBI's GDP growth forecast very well placed: Economic Affairs Secretary Ajay Seth

The RBI expectedly left its key lending rates unchanged for the fifth consecutive time and predicted faster growth in the world's fastest-growing major economy amid an uncertain outlook on inflation ahead of elections.

The six-member Monetary Policy Committee, consisting of three RBI and an equal number of external members, voted unanimously to keep the benchmark repurchase rate at 6.5%. All but one of the panel members voted to keep the policy stance at "withdrawal of accommodation" in signs that rates may remain higher for longer.

"Growth has been resilient and robust, surprising everyone," RBI Governor Shaktikanta Das said announcing the MPC decisions. The encouraging signs, including an expanding manufacturing PMI and healthy growth in eight core industries, underline confidence in sustained robust growth.

On inflation, he said while there has been broad-based easing in core inflation, the "near-term outlook, however, is masked by risks to food inflation, which might lead to an inflation uptick in November and December".