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RBI signals end to rate cuts as inflation risks rise

Downplays note ban impact, changes policy stance to 'neutral' from 'accommodative'; bond yields soar

Reuters  |  Mumbai 

The Reserve Bank of India (RBI) kept its policy rate on hold on Wednesday, warning about the risks of high inflation and downplaying the economic impact from a radical crackdown on "black money," a view that differs with more pessimistic private forecasts. The central bank also said it was changing its policy stance to "neutral" from "accommodative", surprising financial markets and sending bond prices sharply lower on fears that it is signalling its current rate-cutting cycle is over. The RBI monetary policy committee voted 6-0 to keep the repo rate at ...

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First Published: Wed, February 08 2017. 16:20 IST