MUMBAI (Reuters) - The Reserve Bank of India (RBI) unexpectedly kept its policy repo rate unchanged at 6.25 percent on Wednesday, despite calls for action as an intense cash shortage threatens to slam the brakes on the world's fastest growing major economy.
Here are some initial reactions to the decision.
RUPA REGE-NISTURE, CHIEF ECONOMIST, L&T FINANCE HOLDINGS, MUMBAI:
"I think RBI will cut the rates in the next policy meet quite aggressively, by 50 basis points."
"They left the rates untouched because they had to focus on financial stability and rupee stability. Whatever transmission had to happen has already happened."
TIRTHANKAR PATNAIK, INDIA STRATEGIST, MIZUHO BANK, MUMBAI
"We are certainly disappointed with the lack of clarity from the policy commentary on the impacts of demonetization."
"The central bank's decision to keep rates unchanged opens up room for a rate cut in February. While we do not see any upside risks for the next two quarters, we do believe that the monetary policy stance will be more dovish going ahead."
(Reporting by Mumbai and Bengaluru Newsrooms; Editing by Euan Rocha)