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India Jolts Markets By Keeping Rates Unchanged, Signaling End To Easing Cycle

India Jolts Markets By Keeping Rates Unchanged, Signaling End To Easing Cycle

In an unexpected announcement, India’s central bank left borrowing costs unchanged for a second straight meeting, shifting its policy stance to neutral from accommodative, effectively signaling an end to easing cycle. The RBI left the benchmark repurchase rate at a six-year low of 6.25 percent, on expectations of a 25 bps cut. Central bank authorities left rates unchanged at the last, December 7 meeting, while saying that the policy stance remains accommodative.