The Indian central bank maintains key interest rates unchanged, indicating reluctance to raise interest rates to boost the rupee.

The Reserve Bank of India maintained the interest rate unchanged, in line with the expectations of most economists, policymakers hoping to provide a buffer for the economy while keeping the rupee exchange rate stable. The six-member Monetary Policy Committee unanimously agreed to keep the benchmark repurchase rate unchanged at 5.25%, in line with the predictions of 29 out of 35 economists surveyed by the media. The policy stance remains neutral. Despite the continued spread of conflict in the Middle East and the inflation risks arising from energy price shocks, the RBI's decision highlights a determination to support economic growth. As the inflation rate approaches the RBI's target of 4%, economists expect the central bank to raise interest rates in the coming months. "The fundamentals of the Indian economy are much better than in previous periods of global turmoil," said Governor Sanjay Malhotra in a televised speech. "We are still confident in enduring these shocks with minimal pain." Friday's decision indicates that the RBI may be unwilling to raise interest rates to boost the rupee, which fell to a record low of nearly 97 last month. Instead, the government is considering other measures, such as reducing taxes on foreign investment in government bonds, to help promote inflows of funds and boost the currency.