“A country that buys most of its oil from abroad would like three things at once: cheap money at home, a steady currency, and capital free to come and go. It cannot achieve all three. Economists call this the impossible trinity with good reason.
The rupee is at a record low and oil has climbed on the war in West Asia. A rate cut in such an environment lowers the cost of borrowing rupees to sell them for dollars, which is the cheapest way to bet a currency down. It could also nudge another wave of household money into an equity market that is already expensive. A foreign investor looking at those prices may find it easier to sell than to buy.
So rates remained unchanged, which is the right thing to do at this time.”