India holds key rate, sends rupee to new low

RBI acts based on weaker inflation as it grapples with looming credit crunch

20181005 India Patel

 Reserve Bank of India Governor Urjit Patel

ROSEMARY MARANDI, Nikkei staff writer

MUMBAI -- The Reserve Bank of India on Friday held its key interest rate despite fears of accelerating inflation, a move that sent the rupee plummeting to a new low.

Gov. Urjit Patel's six-member monetary policy committee kept the repo rate at 6.5%. The move follows 25 basis point rises in June and August that failed to address the currency's slide.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.