Central Banks

India’s Central Bank Pauses Again to Battle With Inflation

  • RBI raises FY24 inflation forecast to 5.4% from 5.1%
  • ICRR will remove above 1 trillion rupees from banking system
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The Reserve Bank of India left its key interest rate unchanged for a third straight meeting and ordered banks to set aside more cash to mop up excess liquidity, moves signaling heightened vigilance against food-driven inflation.

The central bank held the benchmark repurchase rate at 6.50% Thursday with the six-member monetary policy committee voting unanimously. All 42 economists in a Bloomberg survey predicted the move.