RBI signals end to tightening cycle

The Reserve Bank of India (RBI) left its benchmark interest rate on hold on Friday and indicated it would start cutting its policy rate from this point forward as growing downside risks to the economy weighed in on growth.

The central bank maintained its repo rate – the rate at which banks borrow from the RBI – at 8.5% and its reverse repo rate – the rate at which the RBI borrows from banks – at 7.5%. The RBI has raised rates 13 times since March and by 425 basis points as rising food prices dro