RBI Leaves Key Rates Unchanged

The Reserve Bank of India announced its sixth bi-monthly monetary policy statement where it left key repo and reverse repo rates unchanged. The repo rate was left unchanged at 6.25% and the reverse repo rate at 5.75%, DNAIndia reported. This was against the common view that the central bank would cut rates by at least 25 bps before holding them for the rest of the year. After the policy announcement, the BSE Sensex crashed over 100 points and was trading 120 points below the red line while the NSE Nifty was down 31 points.