The vote by the monetary policy committee to hold rates steady was 6-0
Nifty Realty pared all its losses to end 0.7% higher
Demonetisation, possible rate hike in the US and inflation concerns weigh; Deposits of banned notes cross Rs 11.5-lakh crore mark
Contrary to expectations, RBI has kept the repo rate unchanged at 6.25%
Rate cut would signal RBI's priority is in supporting economy, which grew an annual 7.3% between July and Sept
For the first time decision-making on interest rates will shift to the six-member monetary policy committee.
Rajan said he did not want to offer suggestions to his successor
The policy maintained its accommodative stance and assured of a steady supply of durable liquidity, following up on the changed framework earlier announced in April
India's monetary policy framework has come a long way: the flexible inflation-targeting framework is enshrined in law; a monetary policy committee is being formed with a 4 per cent target set
Reserve Bank of India (RBI) Governor Raghuram Rajan, who announced his last policy on Tuesday, leaves the Indian economy in a better state than it was when he took over. A look at what has changed in his three years in office:
RBI keeps rates unchanged; ensures adequate liquidity in the system
Though the policy has maintained status quo across all levels, the central bank's statement throws some interesting facts on the economy
The decision had been expected after retail inflation rose to 5.77% in June, near the top of the RBI's 2-6% range, and above its target of 5% by March next year
Inflation at a two-year high will probably prevent the RBI Governor from cutting interest rates at his final policy review today
More than Tuesday's policy statement, the subsequent analysis could be the most important part of RBI Governor Raghuram Rajan's last policy review
Borrowers should expect only 25 basis point reduction within a month
Finance Minister for State Jayant Sinha said the govt would work with RBI to amplify both fiscal initiative and monetary initiative that are now in the pipeline
Taking note of falling retail inflation and the government's commitment to fiscal discipline, Governor Raghuram Rajan cut the policy rate to 6.5%
The Reserve Bank of India cut its repo rate by 25 basis points to 6.50 percent on Tuesday, making a widely expected first reduction since September to bring the rate to its lowest in more than five years.
Say 25 bps cut will not make much difference to capex plans, won't improve sentiment