Rajan Holds India’s Rates While Signaling Cut to Come: Economy
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India’s central bank left interest rates unchanged for a fifth straight meeting while signaling a possible easing early next year after Prime Minister Narendra Modi’s government called for lower borrowing costs.
Governor Raghuram Rajan kept the benchmark repurchase rate at 8 percent, the Reserve Bank of India said in a statement in Mumbai today, a move predicted by 44 of 48 economists in a Bloomberg survey. Risks to the central bank’s January 2016 target of 6 percent inflation “appear evenly balanced,” he said today in a statement.