The Reserve Bank of India RBI left interest rates on hold on Friday, pausing

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in a tightening cycle that has seen it lift policy rates 13 times since March 2010, as the economy shows signs of weakness even as inflation remains high.

The RBI kept its policy repo rate unchanged at 8.5 percent at its mid-quarter review, in line with forecasts, two days after data showed November wholesale price index inflation at 9.11 percent, far lower than the 9.73 percent clocked in October.

The RBI also left the cash reserve ratio unchanged at 6 percent, despite market speculation that it might cut the ratio in order to bolster market liquidity.