India's central bank, the Reserve Bank of India (RBI), has decided to keep the benchmark interest rate unchanged at 6.50% in line with economists' expectations.
This decision comes as consumer price inflation rose to 6.21% in October, exceeding the central bank's target of 4% and its tolerance ceiling of 6%.
The RBI aims to balance inflation containment with economic growth in the third-largest economy.
Governor Shaktikanta Das has revised India's GDP growth forecast for the fiscal year 2025 from 7.2% to 6.6%, reflecting concerns over a slowdown in the domestic economy.
Despite calls for lower borrowing costs, the RBI has ruled out an immediate interest rate cut and adopted a cautious approach to monetary easing.
The Indian rupee has faced pressure, but remained stable after the RBI's announcement.
The benchmark index has shown resilience, while Indian bonds have experienced a rally.
The RBI's current stance considers inflationary pressures and growth concerns, with significant implications for domestic and international investors.