India’s central bank left interest rates unchanged, despite the Middle East conflict threatening to stoke inflation and heap pressure on a weak rupee, AFP reports.
The Reserve Bank of India (RBI) said the benchmark repurchase rate, the level at which it lends to commercial banks, would remain at 5.25 per cent after a unanimous vote by a six-member panel.
Central banks in emerging and frontier markets from Indonesia to Sri Lanka have hiked rates in recent weeks to bolster their currencies and tamp down inflationary pressures.
New Delhi has sought to shield Indians by both limiting and staggering fuel price hikes, which has left inflation still below the RBI’s medium-term target of 4pc.
