RBI holds rates amid India slowdown

Mumbai

INDIA'S central bank held interest rates at a seven-year low on Wednesday in line with analysts' expectations, as Asia's third largest economy experiences a slowdown following recent high-profile reforms. 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 is likely to disappoint the Indian government which had sought a cut to help boost flagging growth, according to local media reports. India was the fastest growing major economy in the world last year, clocking 7.1 per cent in the first quarter.