World Economy

RBI May Hold Back Rates

RBI May Hold Back RatesRBI May Hold Back Rates

 Four out of the five members in the Reserve Bank of India’s external panel recommended the central bank keep interest rates on hold at its Feb. 2 policy review, given concerns about accelerating inflation. Members of the RBI’s Technical Advisory Committee also expressed concerns about the impact from a planned $16 billion pay hike for India’s public servants set to be unveiled starting this year, according to minutes released on Monday. Of the four who recommended rates be kept on hold, one suggested the RBI consider an out-of-cycle cut after the government unveils its 2016/17 budget on Feb. 29, citing a weak domestic and global economy.