India’s central bank left interest rates unchanged for a fourth straight meeting, continuing a fight against Asia’s fastest inflation as Prime Minister Narendra Modi takes steps to revive the manufacturing sector.
Governor Raghuram Rajan kept the benchmark repurchase rate at 8 percent, the Reserve Bank of India said in a statement in Mumbai today, a move predicted by all 51 economists in a Bloomberg survey. While the near-term consumer price inflation outlook is balanced “with a slant to the downside,” risks to the January 2016 target of 6 percent are “still to the upside, though somewhat lower than in the last policy statement.”
“This continues to warrant policy preparedness to contain pressures if the risks materialize,” Rajan said in a statement today. Future policy stances will be influenced by the RBI’s inflation projections concerning the January 2016 target of 6 percent, he said.