Financial News: India Central Bank Keeps Rate Unchanged

India Central Bank Keeps Rate Unchanged

10/01/2025 - 01:47:00 (RTTNews)

(RTTNews) - The Reserve Bank of India left its interest rate unchanged on Wednesday and downgraded its inflation forecast citing the reduction in goods and services tax rates.

The Monetary Policy Committee, led by Governor Sanjay Malhotra, unanimously decided to hold the policy repo rate at 5.50 percent. The MPC also decided to continue with the neutral stance.

The bank had reduced the rate by 50 basis points in June and 25 basis points each in February and April.

Policymakers noted that the impact of the front-loaded monetary policy actions and the recent fiscal measures is still playing out. The trade related uncertainties are also unfolding.

"The MPC, therefore, considered it prudent to wait for the impact of policy actions to play out and greater clarity to emerge before charting the next course of action," the bank said in a statement.

The bank assessed that headline inflation outcome will be softer than previously projected, primarily on account of the goods and services tax rate cuts and benign food prices. The bank lowered its inflation outlook for the current financial year to 2.6 percent from 3.1 percent.

Real GDP growth for 2025-26 was projected at 6.8 percent, which was revised up from 6.5 percent estimated in August.

However, the bank said growth is likely to be slightly slower than previously projected going forward due to the higher trade tariffs.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Croatia Inflation Slows Sharply In October (23 min(s), 42 sec(s) ago)
(RTTNews) - Croatia's consumer price inflation eased markedly in October to its lowest level i ...Full Story»

Brazil Jobless Rate Remains Stable At 5.6% (18 min(s), 42 sec(s) ago)
(RTTNews) - Brazil's unemployment rate held steady in the three months ending in September, fi ...Full Story»

Portugal Inflation Eases Slightly, Industrial Output Grows (56 min(s), 42 sec(s) ago)
(RTTNews) - Portugal's consumer price inflation moderated slightly in October, while industria ...Full Story»

Chicago Business Barometer Climbs More Than Expected But Still Indicates Contraction (48 min(s), 42 sec(s) ago)
(RTTNews) - A reading on Chicago-area business activity increased by more than expected in the mon ...Full Story»

French Inflation Weakens In October (35 min(s), 42 sec(s) ago)
(RTTNews) - France's inflation slowed in October as food price growth softened and energy pric ...Full Story»

Eurozone Inflation Softens On Energy Prices (10 min(s), 42 sec(s) ago)
(RTTNews) - Eurozone inflation softened in October largely due to the fall in energy prices, while ...Full Story»

Hong Kong GDP Growth Accelerates In Q3 (32 min(s), 42 sec(s) ago)
(RTTNews) - Hong Kong's economy expanded at a faster pace in the three months ending in Sept ...Full Story»

German Import Prices Fall At Slowest Pace In 5 Months (13 min(s), 42 sec(s) ago)
(RTTNews) - Germany's import prices dropped at the slowest pace in five months in September as ...Full Story»