POST TIME: 7 December, 2017 00:00 00 AM
India’s central bank holds rates at 7 year low

India’s central bank holds rates at 7 year low

AFP, MUMBAI: India’s central bank held interest rates at a seven-year low yesterday, citing concerns over inflation and rising oil prices as a reason not to make a further cut.

The Reserve Bank of India (RBI) said the benchmark

repo rate—the level at which it lends to commercial banks—would remain unchanged at 6.0 per cent.

The decision was in line with analysts’ expectations.

The RBI said in a statement the decision was consistent with its objective of keeping inflation at around four percent, noting that consumer price inflation hit a seven-month high recently.

Consumer prices rose to 3.58 per cent in October from a

year earlier, according to official data.

“There is a risk that this upward trajectory may continue in the near-term,” the RBI said, predicting that inflation would be in the range of 4.3-4.7 per cent for the third and fourth quarters of this year.