[snap] RBI holds interest rates

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The Reserve Bank of India held interest rates at 8.00 per cent on Monday, despite hope that it might cut in the wake of a slew of important fiscal reforms announced by the government on Friday. The bank cut the cash reserve ratio for banks by 25bps.

With inflation at 7.55 per cent for August, and the government’s reforms unlikely to affect the economy in the near-term, economists said the RBI had little choice but to pause.

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