RBI on hold despite weak growth and inflation
Committee votes unanimously to wait for more data despite seeing “space for future action”
The Reserve Bank of India caught markets by surprise on November 5 with a vote to hold interest rates, despite weak inflation and a deteriorating growth outlook.
The monetary policy committee (MPC) was unanimous in its decision to keep the policy rate at 5.15%. “The MPC recognises there is monetary policy space for future action,” the RBI said in a statement. “However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture.”
The inflation
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