India Holds Rate, Signals Longer Pause After US Trade Deal (1)

The Reserve Bank of India kept its benchmark interest rate unchanged on Friday, signaling an end to its easing cycle as the economy gets a boost from higher government spending and a surprise US trade deal to lower tariffs.

The central bank’s six-member Monetary Policy Committee voted unanimously to keep the repurchase rate at 5.25%, in line with expectations of most economists in a Bloomberg survey. The policy stance was retained at neutral.

Speaking to reporters after the policy announcement, Governor Sanjay Malhotra said the stance suggests rates are likely to remain at current levels over the next nine to ...