World Economy

RBI Keeps Rate Unchanged

RBI Keeps Rate UnchangedRBI Keeps Rate Unchanged

India’s central bank Governor Urjit Patel left interest rates unchanged at 6.25% Wednesday, its first monetary policy decision since the government’s shock move to withdraw high-denomination banknotes from circulation, AFP reported. The Reserve Bank of India said the benchmark repo rate—the level at which it lends to commercial banks—would stay steady after it was cut to 6.25% in October. Lower interest rates boost consumer spending which can cause an uptick in inflation. Pressure to cut rates mounted last week, with analysts expecting a 25 basis points cut after India reported a lower-than-expected 7.3% growth of gross domestic product in the three months to the end of September.

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