By Tuba Ongun
ANKARA (AA) - India’s central bank unexpectedly kept its policy rate unchanged on Thursday, as uncertainty rises over the economic outlook amid the recent global banking turmoil.
The Reserve Bank of India (RBI) left its benchmark policy repo rate constant at 6.5%, while pledging to further raise the rate if necessary.
Economists had expected the central bank to hike the policy rate by 25 basis points.
The bank also decided to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with its target, while supporting growth.
The RBI has increased rates by 250 basis points since May 2022.
India's annual consumer price inflation eased slightly to 6.44% in February from 6.52% in January, according to the latest data.
The bank lowered its inflation forecast to 5.2% from 5.3% for the fiscal year for the year starting in April.