India’s central bank left interest rates unchanged for the second time since June, in line with expectations, while cutting its growth forecast and lifting its inflation outlook as economic conditions deteriorate.
The Reserve Bank of India (RBI) kept its policy repo rate at 8 percent and left the cash reserve ratio (CRR) for banks at 4.75 percent. CRR is the share of deposits banks must keep with the RBI.
Headline wholesale price index inflation remained above 7 percent in June, while India’s consumer price index was 10 percent. Growth in Asia’s third largest economy slowed to a nine year low of 5.3 percent in the March quarter.
(Source: CNBC)