India’s central bank holds rate

City A.M. Reporter
INDIA’S central bank unexpectedly kept its policy interest rate on hold yesterday, yet maintained its tough rhetoric against surging inflation, warning it would act any time needed even if the economy continues to struggle.

The Reserve Bank of India’s decision to keep the repo rate at 7.75 per cent surprised investors.

“I want to emphasise that we are not being soft on inflation,” said governor Raghuram Rajan.

“It shouldn’t be taken that we’re on hold. We are waiting for data. Hence as the data come in, we will react appropriately.”