RBI keeps interest rates at 5.5%: Here's why
The Reserve Bank of India (RBI) is keeping its main interest rate unchanged at 5.5% for now, mainly because prices are still rising and the global economy feels shaky.
Inflation averaged 4.3% last quarter, and RBI expects it to stay above its 4% target by the end of this year—so things might stay pricey for a while.
Sensex, Nifty slip slightly
After the announcement, government bond yields ticked up slightly, while both Sensex and Nifty slipped just a bit. The rupee actually got a little stronger against the US dollar.
RBI Governor Sanjay Malhotra also updated inflation forecasts—expecting some ups and downs ahead—and said global tensions could impact growth.
The decision to hold rates was unanimous among policymakers, aiming to keep things stable in uncertain times.