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India Holds Rates as Rupee Drop Risks Fueling Inflation

India left interest rates unchanged after a plunge in the rupee to a record low threatened to stoke inflation in Asia’s third-largest economy.

Governor Duvvuri Subbarao kept the repurchase rate at 7.25 percent, the Reserve Bank of India said in Mumbai today. Fifteen of 25 analysts in a Bloomberg News survey predicted the decision. Ten called for a fourth straight cut of 25 basis points.