Mumbai, Dec 18 : In an unexpected move, the Reserve Bank of India (RBI) on Wednesday surprised markets by leaving all key policy rates unchanged.

The Reserve Bank, in its Mid-Quarter Monetary Policy Review, kept its short-term lending rate unchanged at 7.75 per cent, and the Cash Reserve Ratio steady at 4 per cent.

RBI Governor Raghuram Rajan said the apex bank will take calibrated action in the future, based on inflationary trends and action by the U. S. Federal Reserve.

The RBI in its policy statement further said it would also gauge the impact from any decision by the U. S. Federal Reserve to start withdrawing its monetary stimulus.

"The policy decision is a close one. Current inflation is too high," added the RBI. (ANI)