RBI holds rates as inflation follows ‘glide path’

Reserve Bank of India in Mumbai

The Reserve Bank of India (RBI) held interest rates today while shifting its liquidity provision to longer-term repurchase operations (repos) as it continues to transform its monetary policy framework.

The central bank held its main policy rate at 8%, having raised it by 75 basis points between September and January. Raghuram Rajan, the RBI governor, said it was appropriate to hold "while allowing the rate increases… to work their way through the economy".

The RBI is attempting to bring annual C

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