India Central Bank Holds Rates in Push to Stem Rupee Plunge
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India’s central bank left interest rates unchanged and said increases in borrowing costs earlier this month to stem the rupee’s slide will be reversed in a measured way as the currency stabilizes.
Governor Duvvuri Subbarao kept the benchmark repurchase rate at 7.25 percent, the Reserve Bank of India said today. All except one of 32 analysts in a Bloomberg News survey predicted the decision, with one expecting a cut to 7 percent. The review is the last scheduled before Subbarao’s term ends in September.