India's central bank kept its key interest rate unchanged on Wednesday, defying expectations for a modest reduction in the aftermath of the currency demonetization shock.
The Monetary Policy Committee of Reserve Bank of India headed by Urjit Patel unanimously decided to hold the key repo rate at 6.25 percent and reverse repo rate at 5.75 percent.
Economists had widely expected 25 basis point reduction in key rates. The repo rate was last reduced by a quarter point in October.
The bank lowered its growth outlook for 2016-17 to 7.1 percent from 7.6 percent.
The RBI today withdrew the incremental cash reserve ratio, which the bank had announced on November 26 to absorb excess liquidity in the system following the demonetization.
The liquidity released due to the discontinuation of the incremental CRR would be absorbed by a mix of market stabilization scheme and liquidity adjustment facility operations, the bank said.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.