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The Reserve Bank of India keeps repo rate on hold at 6.25 per cent -

The Central bank in it's sixth bi- monthly policy review on wednesday cited global uncertainty, rising commodity prices and a strong resurgence of demand in FY18 as the reasons for keeping rates on hold.
The Reserve Bank of India’s six-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel, decided to keep the policy repo rate unchanged at 6.25 per cent. The decision came in the backdrop of an upturn in the prices of several items, possible re-emergence of food inflation pressures, likelihood of crude prices firming up in the coming months, and imminent tightening of US monetary policy. Simultaneously, the central bank alleviated the banks’ burden of maintaining temporary incremental cash reserve ratio (CRR) of 100 per cent. It announced withdrawal of this requirement with effect from the fortnight beginning December 10. This move could give banks some leeway to cut lending and deposit rates going forward.
CRR is the slice of deposits that banks have to park with the RBI. It is currently at 4 per cent of deposits. The MPC said its decision is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by the fourth quarter of 2016-17 and the medium-term target of 4 per cent within a band of +/-2 per cent, while supporting growth.
The markets were widely expecting the RBI to follow up its October 4 repo rate cut of 25 basis points with a similar cut in the fifth bi-monthly monetary policy review on Wednesday. The repo rate is the interest rate at which banks borrow funds from the central bank to overcome short-term liquidity mismatches. Since January 2015, the RBI has cut the repo rate cumulatively by 175 basis points.