Chennai, Dec 18 (IANS): The RBI's decision to leave interest rates unchanged in its mid-quarter monetary policy review was a "prudent move", Indian Overseas Bank (IOB) chairman M. Narendra said Wednesday.

"The RBI's action to pause on policy rates is a welcome and prudent move at the present juncture," Narendra said in a statement.

"Money market conditions are likely to continue at the present level for the time being. The bond yields are likely to soften with an eye on future data," he added.

Narendra said the second quarter review in October had raised expectations that the rates may start to head south from the mid-quarter review in December.

"Signs of green shoots in the economy also added to the expectations raising hopes for upward revision of GDP (gross domestic product) forecast.

"However, the moderation anticipated on the prices front did not happen with inflation remaining generalised. In the circumstances, RBI has wisely maintained status quo till more convincing data can emerge."