India Central Bank Keeps Rate-Cut Door Open After Tariff Hit (1)

India’s central bank left its benchmark interest rate unchanged Wednesday, while signaling there may be scope to ease in coming months to support an economy taking a hit from US tariffs.

Governor Sanjay Malhotra said the six-member monetary policy committee voted unanimously to keep the repurchase rate steady at 5.5%, in line with the majority of forecasts in a Bloomberg survey.

Malhotra said it was “prudent” to hold rates now to allow recent policy measures like tax cuts to filter through the economy, although hinted policymakers were open to easing in future.

“The current macro-economic conditions and the outlook ...