MUMBAI - The Reserve Bank of India (RBI) kept interest rates unchanged at a policy meeting on Wednesday to offer support for an economy that has lost some momentum, in a decision that was widely expected as inflation has eased significantly.
The monetary policy committee (MPC) kept the repo rate unchanged at 6.50 percent on Wednesday as predicted by 64 of 70 analysts in a Reuters poll. The central bank also retained its 'calibrated tightening' stance as expected.
All six members of the MPC voted to keep the rates on hold.
The central bank said starting in the January-March quarter of 2019 it would begin to lower banks' mandatory bond holding ratios by 25 basis points each quarter until it reaches 18 percent of deposits, in a move aimed to push banks to lend more.
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