Economics
Record-Low Rupee Doesn't Scare India as Headwinds Build
- Reserve Bank of India holds interest rates after two hikes
- Rupee weakness and surging crude expected to fan inflation
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India’s central bank stared down the rupee’s slide to a record low, opting to keep interest rates unchanged as it flagged risks to the economy from global monetary policy tightening, trade wars and surging oil prices.
In a surprise decision, the monetary policy committee led by Governor Urjit Patel voted 5-1 to leave the repurchase rate at 6.5 percent on Friday. The decision, which was predicted by just nine of 49 economists in a Bloomberg survey, sparked a selloff in the nation’s currency and stocks.