Economics
India’s Central Bank Keeps Key Rate Unchanged on Inflation Risks
- Benchmark repurchase rate kept at 4%, other rates also on hold
- Announces measures to protect businesses, check bad loans
Shoppers wear protective masks while buying vegetables from a street stall in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s central bank kept interest rates unchanged, while outlining a number of measures to ease stress in the banking sector as the economy heads for its first full-year contraction in more than four decades.
The Monetary Policy Committee voted to keep the benchmark repurchase rate at a record low of 4%, Governor Shaktikanta Das said in an online broadcast on Thursday. Economists were split on the decision, with half of the 44 surveyed by Bloomberg predicting a 25 basis-point reduction, one predicting a 50-point cut and the rest seeing no change.