AFP, Mumbai :
India’s central bank held interest rates at a seven-year low on Wednesday, citing concerns over inflation and rising oil prices as a reason not to make a further cut.
The Reserve Bank of India (RBI) said the benchmark repo rate-the level at which it lends to commercial banks-would remain unchanged at 6.0 percent.
The decision was in line with analysts’ expectations.
The RBI said in a statement the decision was consistent with its objective of keeping inflation at around four percent, noting that consumer price inflation hit a seven-month high recently.
Consumer prices rose to 3.58 percent in October from a year earlier, according to official data.
“There is a risk that this upward trajectory may continue in the near-term,” the RBI said, predicting that inflation would be in the range of 4.3-4.7 per cent for the third and fourth quarters of this year.
India’s central bank held interest rates at a seven-year low on Wednesday, citing concerns over inflation and rising oil prices as a reason not to make a further cut.
The Reserve Bank of India (RBI) said the benchmark repo rate-the level at which it lends to commercial banks-would remain unchanged at 6.0 percent.
The decision was in line with analysts’ expectations.
The RBI said in a statement the decision was consistent with its objective of keeping inflation at around four percent, noting that consumer price inflation hit a seven-month high recently.
Consumer prices rose to 3.58 percent in October from a year earlier, according to official data.
“There is a risk that this upward trajectory may continue in the near-term,” the RBI said, predicting that inflation would be in the range of 4.3-4.7 per cent for the third and fourth quarters of this year.
