India holds rates at 6.75pc

AFP, MUMBAI: India's central bank kept interest rates on hold yesterday, citing the importance of controlling inflation and noting a slowing growth momentum in Asia's third-largest economy.
The Reserve Bank of India (RBI) said the benchmark repo rate, the level at which it lends to commercial banks, would remain at 6.75 per cent as analysts had expected.
Out of 40 economists surveyed by Bloomberg News, all but two had predicted that the bank would leave the key rate unchanged.
"The Indian economy is currently being viewed as a beacon of stability because of the steady disinflation, a modest current account deficit and commitment to fiscal rectitude," RBI governor Raghuram Rajan said in a statement.
"This needs to be maintained so that the foundations of stable and sustainable growth are strengthened," the RBI chief added, following the bank's monetary policy review meeting in Mumbai.
India's consumer price inflation accelerated to 5.6 per cent in December, the fifth month in a row it had gained pace, but remained within the central bank's target.

India holds rates at 6.75pc

AFP, MUMBAI: Indias central bank kept interest rates on hold yesterday, citing the importance of controlling inflation and noting a slowing growth momentum in Asias third-largest economy. The Reserve Bank of India (RBI) said the benchmark repo rate, the level at which it lends to commercial banks, would remain at 6.75 per cent as analysts had expected. Out of 40 economists surveyed by Bloomberg News, all but two had predicted that the bank would leave the key rate unchanged. The Indian economy is currently being viewed as a beacon of stability because of the steady disinflation, a modest current account deficit and commitment to fiscal rectitude, RBI governor Raghuram Rajan said in a statement. This needs to be maintained so that the foundations of stable and sustainable growth are strengthened, the RBI chief added, following the banks monetary policy review meeting in Mumbai. Indias consumer price inflation accelerated to 5.6 per cent in December, the fifth month in a row it had gained pace, but remained within the central banks target.