Reserve Bank of India unexpectedly stays put on rates

India's central bank unexpectedly lowered its main policy rate on Wednesday despite a slowing economy and price pressures.

The Reserve Bank of India kept its benchmark policy rate at 6.25%, contrary to expectations for a reduction.

Consumer prices on the Subcontinent slowed to a 3.41% year-on-year clip in December, coming in well below the monetary authority's 5.0% target.

Activity in South Asia's largest economy took a big hit in 2016 after the government's controversial decision to eliminate high denomination bills from circulation, bolstering expectations for rate cuts.

Furthermore, New Delhi's new federal budget for the next fiscal year, starting on 1 April, aimed to reduce the country's fiscal deficit from 3.5% to 3.2%.