The Reserve Bank of India (RBI) stood pat on monetary policy Tuesday, despite signs of slowing growth in Asia’s third largest economy.
The central bank held the repo rate at 8 percent at its policy review, largely in line with expectations. Forty-one of 45 economists expected the RBI to keep its benchmark rate at 8 percent, while four expected a 25 basis-point reduction, according to a Reuters poll.
A combination of slowing growth and cooling inflation has led to growing calls for Governor Raghuram Rajan to ease monetary policy. India’s economy hit a soft patch in the July-September quarter, with gross domestic product (GDP) growth slowing to 5.3 percent from 5.7 percent in the previous three months.