Central Banks
India Won’t Back Off Inflation Fight After Smaller Rate Hike
- RBI retains 6.7% inflation forecast, cuts growth view
- Das says policymakers ready to act as may be necessary
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India’s central bank vowed to stick with its inflation fight, even as it slowed the pace of increase in borrowing costs in a signal that its nearing the peak rate.
The Reserve Bank of India’s six-member Monetary Policy Committee voted 5-1 to raise the benchmark repurchase rate by 35 basis points to 6.25%, a level last seen in 2018. The rate panel also decided by a 4-2 vote to stay focused on withdrawal of accommodation, Governor Shaktikanta Das said.