News digest: Monetary policy review, stock markets, IL&FS crisis, and more

RBI keeps policy rates unchanged, shifts stance to 'calibrated tightening'

The Reserve Bank of India (RBI) on Friday surprised the markets by keeping the policy rates unchanged even as it shifted its stance to “calibrated tightening”.

The central bank indicated it was in no mood to stop the rupee slide in order to improve the country’s export competitiveness.

The six-member monetary policy committee (MPC) of the RBI voted five to one to maintain the status quo.

Chetan Ghate voted for a rate hike while Ravindra Dholakia voted to keep the policy stance unchanged at “neutral”.

The policy rate stands at