India's central bank holds rates as inflation eases

India's central bank again left interest rates unchanged on Friday, saying that easing inflation and a stable financial outlook had tempered economic headwinds. The benchmark repo rate -- the level at which the Reserve Bank of India (RBI) lends to commercial banks has stood at 6.50 percent since February, following a series of hikes to curb rising prices last year.

The Indian economy "presents a picture of resilience", RBI governor Shaktikanta Das said in a press conference. "Fundamentals remain strong.” Inflation spiked at 7.4 percent in July but was now five percent, Das said, adding that the bank had raised its GDP growth forecast for 2023-24 to seven percent, up from an earlier 6.5 percent.

The World Bank said in October that India was expected to remain one of the world's fastest-growing economies, with strong domestic demand and investment helping it weather inflation and challenging global conditions.