India Central Bank Keeps Rates on Hold

The Reserve Bank of India (RBI) has kept interest rates unchanged at 7.75 percent on Wednesday, defying expectations of a hike and triggering speculation that the RBI’s rate hike cycle may be over.

Analysts had been expecting the central bank to raise the benchmark repo rate by 25 basis points after inflation in November accelerated 7.5 percent, versus analysts’ forecast of 7 percent, sparking fears of stagflation.

But the inaction could mean that the central bank’s focus remains on economic growth.

via India central bank surprises by keeping rates steady

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza