Central bank holds rates as expected

The Reserve Bank of India (RBI) kept its key repo rate steady at 5.50% on Wednesday, as expected, while policymakers awaited the impact of recent rate cuts and assessed risks from higher-than-expected US tariffs.

The six-member rate-setting panel held the policy rate in a unanimous vote and decided to continue with a “neutral” stance.

Global trade challenges continue to linger but prospects for the Indian economy remain “bright,” Governor Sanjay Malhotra said in his statement.

A large majority of economists, 44 of 57, had forecast a pause in a July 18–24 Reuters poll, following a surprise 50-basis-point cut in June.