In­dia’s top bank leaves key rate steady

The Star (Kenya) - - News Business -

REUTERS/ The Re­serve Bank of In­dia un­ex­pect­edly kept its pol­icy repo rate un­changed at 6.25 per cent yes­ter­day, de­spite calls for ac­tion as an intense cash short­age threat­ens to slam the brakes on the world’s fastest grow­ing large econ­omy. The RBI’s mon­e­tary pol­icy com­mit­tee voted 6-0 to leave the repo rate un­changed, af­ter cut­ting it by 25 ba­sis points at its last re­view in Oc­to­ber, also unan­i­mously. A ma­jor­ity of the 56 an­a­lysts polled by Reuters had ex­pected a rate cut of at least 25 bps, though 18 had fore­cast pol­icy would re­main un­changed. Pres­sure on the RBI and Gover­nor Ur­jit Pa­tel to act has grown since Modi stunned the coun­try on Novem­ber 8 with a dras­tic plan to abol­ish 500 and 1,000 ru­pee notes, re­mov­ing 86 per cent of the cur­rency in cir­cu­la­tion in

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