The Reserve Bank of India chose to hold its benchmark interest rate steady to better understand how the recent broad-based tariffs introduced by U.S. President Donald Trump could affect the nation’s economic trajectory, according to meeting minutes released on Wednesday. The central bank’s monetary policy committee, composed of six members, maintained the repurchase rate at 5.50% earlier this month, signaling caution amid external uncertainties. The decision reflects concerns over how trade disruptions might influence inflation and growth in Asia’s third-largest economy. By pausing, policymakers aim to gather more data before making further adjustments to monetary settings.
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Reserve Bank of India Says It Paused to Assess Tariff Impact on Economy
India’s rate-setters decided to pause interest rates to assess the impact of US President Donald Trump ’s sweeping tariffs on Asia’s third largest economy, minutes of the central bank’s policy meeting showed Wednesday. n nThe Reserve Bank of India ’s six-member monetary policy committee kept the repurchase rate unchanged at 5.50% earlier this month.