RBI keeps policy rate on hold, with eyes on inflation

The RBI monetary policy committee on Wednesday voted 6-0 to keep the repo rate at 6.25%

The Reserve Bank of India (RBI) kept its policy rate on hold for a second meeting in a row, opting to wait for more clarity on the trend for inflation and on how demonetisation would impact economic growth.

The RBI also changed its stance to "neutral" from "accommodative", saying it would monitor inflation, despite calls for the central bank to support an economy dealt a major blow when Prime Minister Narendra Modi in November abolished high-value notes in a bid to target unaccounted cash, or "black money."

The RBI monetary policy committee on Wednesday voted 6-0 to keep the repo rate at