MUMBAI - The Reserve Bank of India held its policy rate unchanged, surprising most analysts who had expected a rate increase to combat inflationary pressures arising from high oil prices and a weakening rupee.
The monetary policy committee kept the repo rate unchanged at 6.50 percent on Friday, in sharp contrast to expectations of a hike by 35 of 64 analysts in a Reuters poll last week.
The panel shifted its policy stance to 'calibrated tightening" from 'neutral'.
Five of the six panel members voted to leave the rate unchanged.
The reverse repo rate also stayed at 6.25 percent.