India Growth Weaker as Inflation Still High, Central Bank Says

India’s economic growth is weakening more than anticipated and inflation remains “high” as the rupee’s fall threatens to stoke price pressures, the central bank said, signaling it may leave interest rates unchanged.

“The growth slowdown, high inflation and currency pressures, complicate policy choices,” the Reserve Bank of India said in a report yesterday before its rate decision in Mumbai. The “critical factors” ahead will be “core inflation and exchange rate pass-through,” it said, adding that keeping the “liquidity deficit” in acceptable limits is also a priority.