India's Central Bank Holds Benchmark Rate at 5.25% for Fifth Consecutive Time on August 5

HSBC0.60%
According to a statement from India's central bank (RBI) on August 5, the bank held its benchmark interest rate at 5.25% for the fifth consecutive decision, in line with market expectations. RBI Governor Sanjay Malhotra cited moderating core inflation excluding precious metals as justification for the pause, though headline inflation has risen above the central bank's medium-term target. India's June consumer price index reached 4.38%, the highest in 18 months, surpassing the RBI's 4% target. HSBC forecasted India's inflation will exceed 5% for eight months starting in October, predicting rate hikes of 25 basis points each in October and December.
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