Reserve Bank of India to delay raising repo rate

Delay strategy: Inflation has held above the RBI’s 6% upper threshold this year, casting doubt on its current strategy of keeping rates low to bolster growth. — AFP

BENGALURU: The Reserve Bank of India (RBI) will delay its first interest rate rise by at least four months to August at the earliest, according to a Reuters poll of economists who say the central bank must now start worrying about inflation.

Inflation has held above the RBI’s 6% upper threshold so far this year, casting doubt on its current strategy of keeping rates low to bolster growth even as some central banks are already raising borrowing costs in this cycle.