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Economy

India pauses on rate cuts to tame inflation in surprise move

Central bank leaves room for future monetary loosening amid stagflation concerns

The Reserve Bank of India had continued to lower interest rates since this February as it tries to bolster the country's flagging economy even as inflation heats up.   © Reuters

MUMBAI -- The Indian central bank on Thursday held its repo rate steady at 5.15% on Thursday as the South Asian country battles both rising inflation and the slowest economic growth since Prime Minister Narendra Modi took office in 2014.

The unanimous decision by the Reserve Bank of India's six-member Monetary Policy Committee to stand pat surprised many market watchers and economists who had predicted a cut of least a 25 basis points.

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