No change in Indian interest rate

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India's central bank left its key interest rate unchanged yesterday due to inflation concerns, thereby thwarting hopes of a cut to kick-start flagging growth in Asia's third-largest economy.

The Reserve Bank of India said that the policy repo rate – at which it makes short-term loans to banks – would remain unchanged at 8 per cent, and the cash reserve ratio – the ratio of cash banks must keep on hand – is to stay at 4.75 per cent.

"Future actions will depend on a continuing assessment of external and domestic developments that contribute to lowering inflation risks," the bank said in its policy statement.