The Reserve Bank of India surprised observers today (October 5) by keeping its policy rate on hold in the face of growing imbalances and volatility in markets.
The monetary policy committee voted 4–2 in favour of keeping the main rate on hold at 6.5%, though it shifted its “stance” in favour of “calibrated tightening”. Governor Urjit Patel said this meant rate cuts in the current cycle were “off the table”, though the central bank will not necessarily hike at every meeting either.
The RBI face
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- Cyprus ex-governor says authorities asked for false audit of failed bank
- Norwegian government recommends Norges Bank retain control of SWF
- Iranian central bank looking for alternative to Swift, local media says