RBI Strikes Cautious Tone as Food Prices Prevent Rate Cuts
- India central bank leaves rate at 6.5%, in line with forecasts
- Das says monetary policy must remain ‘disinflationary’
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India’s central bank left its benchmark interest rate unchanged as expected, with policymakers worrying that high food prices will continue to keep inflation above its target.
Four of the six monetary policy committee members voted to keep the benchmark repurchase rate at 6.5% Thursday, while the other two called for a quarter-point cut. Almost all economists surveyed by Bloomberg predicted the rate would stay on hold for a ninth policy meeting.