MUMBAI - Indian central bank Reserve Bank of India (RBI) Friday announced to keep interest rates and cash reserve ratio unchanged in its latest monetary policy report.

"From this point on, monetary policy actions are likely to reverse the cycle, responding to the risks to growth," said RBI in the report.

RBI said that based on the projected inflation trajectory, further rate hikes might not be warranted.

The report said, "the timing and magnitude of further actions will depend on a continuing assessment of how these factors shape up in the months ahead."

The central bank also emphasized that the inflation risks remain high and inflation could quickly recur as a result of both supply and demand forces.

RBI maintained its earlier projection that inflation would fall to 7 percent by March 2012.

The overall growth momentum is clearly moderating and the downside risks to RBI's growth projection of 7.6 percent for current fiscal year have increased significantly, said the report, adding that deceleration in investment is a matter of serious concern.