Policy Review: As inflation risks rise, RBI signals end to rate cuts

The vote by the monetary policy committee to hold rates steady was 6-0

The Reserve Bank of India (RBI) kept its policy rate on hold on Wednesday and unexpectedly signalled an end to its longest easing cycle since the global financial crisis, saying inflation poses a bigger threat to the economy than a crackdown on "black money."

After keeping the repo rate on hold at 6.25 percent for a second meeting in a row, the RBI also changed its stance to "neutral" from "accommodative", stunning bond investors who had bet the RBI would ease by 25 basis points, either this week or at its next policy review in April.

The new stance could