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RBI keeps rates on hold

India's central bank kept its policy interest rate unchanged at a five-year low of 6.50 percent on Tuesday, while signalling the prospect of another cut later this year if monsoon rains dampen upward pressure on food prices.

Raghuram Rajan, The Reserve Bank of India (RBI) Governor.
Danish Siddiqui | Reuters
Raghuram Rajan, The Reserve Bank of India (RBI) Governor.

All but one of the 44 economists polled by Reuters last week had predicted the Reserve Bank of India would keep rates on hold after easing them by 150 basis points since January 2015, including a 25 bps reduction at its last policy review in early April.