Reserve Bank of India keeps base rate unchanged as inflation risks remain high

The Reserve Bank of India kept the base rate unchanged at its ninth consecutive policy meeting on Thursday as inflation remained above target.
Four of the six members of the Reserve Bank of India's monetary policy committee voted to keep the benchmark repo rate unchanged at 6.5 per cent, after all but one of 43 economists polled predicted a hold-up. The RBI's monetary policy committee also decided to retain a relatively hawkish policy stance.
Inflation in India rose to 5.08 per cent in June, more than a percentage point above the central bank's 4 per cent target, as rising food prices complicated the timing of a rate cut that Shaktikanta Das, governor, had warned against prematurely.
Economists expect the Reserve Bank of India to cut interest rates in the fourth quarter of this year and will only act after the Federal Reserve cuts rates. (Jin Ten)