Photo : Collected
India's central bank kept interest rates unchanged for the seventh time in a row on Friday, with the world's fifth-largest economy seeing both lingering inflation risks and strong economic growth.
The Reserve Bank of India (RBI) said its benchmark "repo rate", the level at which the central bank lends to commercial banks, would remain the same at 6.5 per cent.
Major central banks around the world have signalled a move towards rate cuts this year.
In India, inflation has been on a downward trajectory but is still stubbornly above the RBI's 4 per cent target.
The government has also forecast a heatwave in several parts of the country, which would threaten to send food prices spiking.
Strong economic growth has also reduced the urgent need for a rate cut.
India's economy grew at a robust 8.4 per cent in the December quarter with a surging manufacturing sector helping defy more modest analyst forecasts.
"Looking ahead, robust growth prospects provide policy space to remain focused on inflation and ensure its descent to the target of 4 per cent," said RBI Governor Shaktikanta Das.
Messenger/Fameema
