India's central bank kept its benchmark interest rate steady at 5.50 percent following a monetary policy review that ended Wednesday. The Reserve Bank of India raised its growth projection for the current fiscal year to 6.8 percent from 6.5 percent based on robust consumption and investment activity. Officials lowered the inflation outlook to 2.6 percent from 3.1 percent after consumer prices hit an eight-year low of 1.6 percent in July before rising slightly to 2.1 percent in August.
The central bank announced plans to expand the use of the rupee in cross-border transactions with neighboring countries. Indian banks may soon provide rupee-denominated loans to residents of Bhutan, Nepal, and Sri Lanka. Merchandise exports increased 2.5 percent between April and August, while services exports maintained double-digit expansion. Equity markets sustained upward momentum through September despite global trade uncertainties affecting international commerce flows.
The central bank announced plans to expand the use of the rupee in cross-border transactions with neighboring countries. Indian banks may soon provide rupee-denominated loans to residents of Bhutan, Nepal, and Sri Lanka. Merchandise exports increased 2.5 percent between April and August, while services exports maintained double-digit expansion. Equity markets sustained upward momentum through September despite global trade uncertainties affecting international commerce flows.
