The Reserve Bank of India on Wednesday kept interest rates on hold at its policy meeting on Wednesday. That surprised the market, which had leaned heavily toward expecting a cut, in part because the government’s cash curbs had weighed on economic growth.
The demonetization program, which started in November, removed 86 percent of India’s currency in circulation by recalling existing 500 ($7.47) and 1,000 ($14.93) rupee notes and later gradually replacing them with newly printed 500 and 2,000 rupee notes.
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