India central bank keeps interest rates on hold at 7.5%

[MUMBAI] India's central bank kept interest rates on hold at 7.50 per cent on Tuesday, waiting for more clarity on inflation after heavy rains raised uncertainty about food prices and seeking to grant banks more time to reflect its previous rate cuts.

Most of the 40 economists surveyed by Reuters had expected the Reserve Bank of India to keep the key lending repo rate on hold.

The RBI has already cut rates twice this year, for a total of 50 basis points, in an aggressive bid to bolster economic growth. Both actions were taken between policy reviews.

REUTERS