India’s central bank may not cut the key lending rate before February unless inflation falls sharply or a global crisis unfolds, a top treasury official of Axis Bank said.
On Thursday, the Reserve Bank of India left the repo rate unchanged at 6.50%, as expected. However, Governor Shaktikanta Das said the central bank needed to move towards the primary target of inflation at the 4% level, and it will do “whatever is necessary to ensure that long-term inflation expectations remain firmly anchored.”