[snap] RBI holds interest rates

Listen to this article

00:00
00:00

The Reserve Bank of India held interest rates at 8.00 per cent on Monday, despite hope that it might cut in the wake of a slew of important fiscal reforms announced by the government on Friday. The bank cut the cash reserve ratio for banks by 25bps.

With inflation at 7.55 per cent for August, and the government’s reforms unlikely to affect the economy in the near-term, economists said the RBI had little choice but to pause.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.