India keeps rates unchanged as cash crunch roils economy

Mumbai

INDIA'S central bank unexpectedly kept its key policy rate unchanged at 6.25 per cent on Wednesday, despite calls for action in the face of an intense cash shortage that threatens to slam the brakes on the world's fastest-growing large economy.

The monetary policy committee of the Reserve Bank of India (RBI) voted 6-0 to leave the repo rate unchanged, saying it needed more time to assess whether the recent cash squeeze would cause more lasting damage to the economy.