India central bank maintains rates at 6.75%

Rajan reiterates the central bank will ensure it is injecting sufficient liquidity into the banking system. – Reuters

MUMBAI: India’s central bank kept its policy rate on hold at 6.75%, as widely expected, opting to wait until after the government’s annual budget statement at end-February to decide on whether to cut interest rates further.

Having cut the policy repo rate by 125 basis points in 2015, Reserve Bank of India governor Raghuram Rajan warned last Friday against straying from the path of fiscal consolidation or relaxing the fight against inflation.