India unexpectedly left its benchmark interest rate unchanged and pledged to hike again if needed, joining other central banks in pausing as global banking woes add uncertainty to the economic outlook.
The Reserve Bank of India’s six-member Monetary Policy Committee unanimously voted on Thursday to keep the repurchase rate at 6.50%, a move expected by only six of 33 economists surveyed by Bloomberg.
Bonds in India rallied, with the yield on benchmark 10-year note falling seven basis points to 7.20%. Stocks erased losses, while the rupee gained.
Source : Indian Central Bank’s Unexpected Decision to Hold Interest Rates Causes Bond Market Rally