The Reserve Bank of India (RBI) Governor Raghuram Rajan has surprised the market by keeping interest rates unchanged which was expecting an increase of at least 25 basis points. Despite the high levels of inflation and slowing economic growth, the decision to keep key policy rates unchanged is a very bold move. Industry will definitely be pleased. Perhaps, the RBI wants things to settle down further and gain a clear perception of the eventualities ahead by taking into account the outcome of the US Federal Reserve meeting due on the future of the economic stimulus.
Srinivasan Umashankar Nagpur
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