India Signals Rates to Stay High for Longer as Economy Booms
- RBI keeps repurchase rate at 6.5%, in line with forecasts
- Governor Das raises full-year growth forecast to 7% from 6.5%
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The Reserve Bank of India signaled it’s nowhere close to cutting interest rates yet as food-driven inflation remains a concern and Asia’s third-largest economy grows faster than expected.
The six-member Monetary Policy Committee voted unanimously to keep the benchmark repurchase rate at 6.5% for the fifth straight time, in line with economists forecasts. All but one of the panel members voted to keep the policy stance at “withdrawal of accommodation,” indicating rates may remain higher for longer.