Key lending rate, deposit rate left unchanged
Inflation projection for 202223 raised to 5.7
India39;s FY23 real GDP growth now seen at 7.2
RBI Governor says inflation higher priority than growth

MUMBAI, April 8 Reuters The Reserve Bank of India kept its key lending rate at a record low on Friday, as expected, but said it will turn its focus to battling inflation as the RussiaUkraine crisis pushes crucial commodity prices to nearrecord highs.

In a surprise move, the central bank also said it would restore a liquidity adjustment tool to precrisis levels, which was seen as a first step to moving away from the ultraloose monetary policy embraced during the COVID19 pandemic.

But with global risks rising, RBI Governor Shaktikanta Das said the process of returning policy settings to more normal levels would be gradual.

The conflict in Europe has the potential to derail the global economy caught in the crosscurrent of multiple headwinds. Our approach needs to be cautious, but proactive in mitigating the adverse impact on India39;s growth and inflation, Das said after the policy decision.

The RBI39;s monetary policy committee held the lending rate, or the repo rate, at 4. The reverse repo rate, or the key borrowing rate, was also kept unchanged at 3.35.

However, the central bank said it would restore the width of the liquidity adjustment facility corridor to 50 basis points.

RBI said the floor of the corridor would be the standing deposit facility rate, which was set…