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India holds interest rate steady
30 Sep 2014 07:07
India's central bank kept interest rates unchanged as it awaits more evidence that high inflation is easing in Asia's third largest economy.
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After a meeting in the financial capital Mumbai, the Reserve Bank of India (RBI) said the benchmark repo rate, at which it lends to commercial banks, would remain at a steep 8.0%.
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The move was widely expected by economists who said the RBI was likely to hold rates steady until the impact of just-ended annual rains that farmers rely on and deregulation of fuel prices was clearly seen in India's inflation rate.
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