MUMBAI, June 8 Reuters India39;s central bank kept its key lending rate steady for a second straight policy meeting on Thursday, as widely expected, but signalled that monetary conditions will remain tight for some time as it looks to further curb inflationary pressures.

The monetary policy committee MPC, which has three members from the Reserve Bank of India RBI and three external members, kept the repo rate steady at 6.50 in a unanimous decision.

All 64 economists in a Reuters poll taken between May 16 and 29 expected no change in rates, and some had started pencilling in rate cuts early next year.

India39;s hold on rates contrasts with recent central bank actions elsewhere.

Two major central banks the Reserve Bank of Australia and the Bank of Canada have surprised markets this week by resuming rate hikes to combat stubbornly high inflation, pushing up bond yields across developed markets.

Despite hitting an 18month low of 4.70 in April, analysts do not expect India39;s inflation to fall to the RBI39;s 4 mediumterm target for at least another two years.

The RBI maintained its policy stance of withdrawal of accommodation to ensure inflation progressively aligns with the committee39;s target while remaining supportive of growth, Governor Shaktikanta Das said while announcing the MPC39;s decision.

Our goal is to achieve the inflation target of 4 and keeping inflation within the comfort band of 26 is not enough, Das said.

The committee will take further monetary…