India keeps policy rates unchanged as expected; focus shifts to growth
MUMBAI (REUTERS) - India's central bank left policy interest rates unchanged as expected on Tuesday, ignoring the growing clamour from business and politicians to lower them, reiterating its October guidance of further policy easing in the March quarter as it shifts its focus towards boosting growth.
The central bank also kept the cash reserve ratio unchanged at 4.25 per cent, its lowest since 1974.
"In view of inflation pressures ebbing, monetary policy has to increasingly shift focus and respond to the threats to growth from this point onwards," the Reserve Bank of India wrote in its mid-quarter monetary policy review.
While, the decision to leave the policy repo rate unchanged at 8 per cent was in line with forecasts in a Reuters poll, expectations for a rate cut had grown slightly after data on Friday showed wholesale inflation cooled to its weakest pace in 10 months in November.