India's central bank holds firm on key rate as rupee suffers historic lows
Nikkei Asia reports India's central bank kept its policy rate unchanged, emphasising the need to balance growth with inflation control. It flagged Middle East tensions' upward pressure on fuel prices and the rupee's slide to historic lows.
Nikkei Asia · Staff WriterIndia's Reserve Bank held its policy rate steady after a unanimous decision by the Monetary Policy Committee chaired by Sanjay Malhotra, Nikkei Asia reports. The Bank stressed it is trying to balance support for growth with keeping inflation contained.
The statement said swings in global fuel prices and weaker investor sentiment have created downward pressure on the rupee. The currency slipped to historic lows in recent weeks, keeping the cost of energy imports in focus. The RBI said it has used currency-intervention tools gradually.
Economists say the Bank may not soften its hawkish tone by year-end if Middle East conflicts persist. Growth and inflation forecasts were left unchanged; the macro data flow will be decisive for any change in the rate path.
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