India’s RBI Signals Support to Modi’s Budget to Aid Growth
- Monetary policy panel keeps repurchase rate steady at 4%
- Central bank forecasts India FY22 GDP growth at 10.5%
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India’s central bank kept interest rates on hold Friday and began withdrawing some pandemic-era policies, while reiterating its intent to keep its stance accommodative to support economic growth.
The Reserve Bank of India emphasized it was seeking to ensure ample liquidity to manage the government’s near-record borrowing and keep rates lower for longer. It also committed to opening up room for more targeted market operations to ensure financial stability, but bonds sold off as the measures fell short of expectations and lacked details.