Indian Central Bank maintains interest rates and reduces inflation forecast

Indian Central Bank maintains interest rates and reduces inflation forecast

By Suvashree Choudhury and Swati BhatMUMBAI (Reuters) - India's central bank left its interest rate unchanged on Thursday and maintained a "neutral" stance, but cut its project ...

By Suvashree Choudhury and Swati BhatMUMBAI (Reuters) - India's central bank left its interest rate unchanged on Thursday and maintained its "neutral" stance, but cut its inflation forecast, reducing the chances of a short-term interest rate hike.The central bank kept its repurchase rate at 6 percent for the fourth consecutive meeting, as expected by all 61 respondents in a Reuters poll.This level is the lowest since November 2010. It also maintained the reverse repurchase rate at 5.75 percent.Five of the six members of the monetary policy committee voted to maintain, while one wanted to raise the buyback rate.The committee drastically reduced its inflation forecast from April to September to 4.7 to 5.1 percent, from a previous range of 5.1 to 5.6 percent released in February.RBL Bank economist Rajni Thakur said high growth and low inflation projections could "very well indicate stable interest rates for the whole year."Concerns about inflation have eased subs...


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