By Kosaku Narioka
India’s central bank held its policy rate steady as domestic inflation moderated.
Reserve Bank of India Gov. Shaktikanta Das said Friday that the monetary-policy committee decided unanimously to leave its policy repo rate unchanged at 6.50%.
Das said the policy committee decided to remain focused on withdrawal of accommodation.
All 10 economists surveyed by The Wall Street Journal projected the Indian central bank would maintain its policy rate.
India’s consumer-price index in August rose 6.8% from a year earlier, down from a 7.4% increase in July, as gains in food prices moderated. The RBI has an inflation target range of 2% to 6%.
The RBI began lifting the policy rate in May 2022 from 4.00% in response to a surge in inflation sparked by the Russia-Ukraine war and the recovery from the Covid-19 pandemic. The central bank last raised the rate in February and has since kept it unchanged.
Write to Kosaku Narioka at [email protected]
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