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RBI Holds Rate at 6.25%

RBI Holds Rate at 6.25%RBI Holds Rate at 6.25%

India’s central bank held interest rates on Thursday, in line with analysts’ expectations, citing inflationary pressures from an imminent tax reform and the possibility of a poor monsoon, AFP reported. The Reserve Bank of India said the benchmark repo rate—the level at which it lends to commercial banks—would remain at 6.25%. It was the third consecutive monetary policy committee meeting in Mumbai where rates have been left unchanged. RBI Gov. Urjit Patel said a new national goods and services tax due to be introduced on July 1 could push inflation up, while a weak monsoon could lead to a poor harvest and a rise in food prices.

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