India's central bank holds rates amid rising inflation

Credit: REUTERS/Anushree Fadnavis

India's central bank kept interest rates on hold on Thursday, amid a recent rise in retail consumer prices and said it would ensure inflation remains within target going forward.

MUMBAI, Aug 6 (Reuters) - India's central bank kept interest rates on hold on Thursday, amid a recent rise in retail consumer prices and said it would ensure inflation remains within target going forward.

The repo rate INREPO=ECI currently stands at 4.0% and the reverse repo rate INRREP=ECI at 3.35%.

Two-thirds of analysts in a Reuters poll had predicted a 25 basis point cut in the repo rate while the rest saw no change.

The Reserve Bank of India has already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50%.

(Reporting by Swati Bhat; Editing by Shri Navaratnam)

((swati.bhat@thomsonreuters.com; twitter.com/swatibhat22; +91-22-68414381; Reuters Messaging: swati.bhat.thomsonreuters.com@reuters.net))

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