RBI Remains Steady at 7.75%

Indian central bank Governor Raghuram Rajan left interest rates unchanged three weeks after an unscheduled cut, signaling that he wants to see Prime Minister Narendra Modi’s first full-year budget before easing further.

Rajan kept the benchmark repurchase rate at 7.75 percent, the Reserve Bank of India said in a statement in Mumbai on Tuesday, a move predicted by 31 of 41 economists in a Bloomberg survey. The rest saw a cut to 7.50 percent.

Rajan reiterated the need to see further data confirming disinflationary pressures and “high-quality fiscal consolidation,” both of which he mentioned when cutting the rate by a quarter point on Jan. 15.

Bloomberg

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