Indian central bank Reserve Bank of India (RBI) announced Monday to keep its key rate, repo rate unchanged at 7.25 percent.

The cash reserve ratio is also held unchanged at 4.0 percent, which in line with market expectations.

Releasing its Mid-quarter review of Monetary policy 2013-2014, RBI said that there are upside risks to inflation on rupee weakness and increases in administered prices. The trade gap has surged due to high gold imports, it said.

RBI has cut the interest rate three times since this year. The latest action is on May 3, the central bank cut its repo rate by 0. 25 per cent to 7.25 percent.