India maintains fixed rates of 5.5 % in line with expectations, as the central bank evaluates the previous discounts

The central bank in India remained without changing the policy average at 5.5 % on Wednesday, in line with the expectations of economists included in Reuters, as it evaluated the impact of the previous discounts.

Sanjay Malhotra, the governor of the Reserve Bank in India, said that inflation was greatly supervised in the first quarter, but growth could decline in the second half of the fiscal year due to global trade uncertainty.

The effects of a huge RBI rate of 50 basis points In June Malhotra explained that it has not yet been liquidated through the economy, adding that the decision to maintain fixed rates was unanimously.

with August inflation data Without the presence of the target inflation squad from RBI from 2 % to 6 %, the central bank had an opportunity to reduce interest rates to stimulate growth, which has been a top priority for the government since the United States imposed definitions on Indian exports.

Sonal Pharma, chief economist at Nomura Research, told CNBC on Monday that lowering prices in October was in a timely manner, as the highest demand for loans from companies and families during the holiday season.

In August, the United States imposed an additional 25 % tariff on Indian imports, referring to New Delhi’s purchases of Russian oil, which raised its total duties to 50 %, among the highest fees on any of Washington’s commercial partners.

Textiles, gemstones, jewelry and marine products from India are some of the most affected sectors due to American definitions. While exports to the United States account for about 2 % of the gross domestic product of India, these sectors are intense, and the degradation of business may lead to job losses.

To alleviate the impact of definitions, the Indian government reduced the tax and services tax on several items on September 22, To stimulate local demand A month -old festive season, which begins with the nine -day navratri festival, followed by Diwali.

It is expected that the commodity tax and services tax reducing fast -moving consumer goods, cars and agricultural products are expected to be made cheaper.

However, the tax cuts will only provide a temporary batch of the Indian economy, and the creation of job opportunities needs to improve the receipt of continuous consumption, as VARMA from Nomura said.

Domestic consumption in India represents more than 60 % of GDP, near other advanced economies such as the United States and the United Kingdom, making it less dependent on exports. It is expected that the commodity and services tax discounts will reduce the effect of American tariffs.

In September, Goldman Sachs The growth of the real gross domestic product The country’s expectations of 60 basis points to 7.1 % for the evaluation year 2025 and 6.7 % for the fiscal year 2026. a report Better growth than GDP is 7.8 % in the quarter -quarter.