Indian Rupee Gains as RBI Remains Passive

The Indian rupee gained today as the nation’s central bank kept its interest rates stable, refraining from monetary easing. At the same time, Governor Raghuram Rajan hinted that the bank is able to cut borrowing costs if necessary.
The Reserve Bank of India kept all of its rates stable at today’s policy meeting, including the benchmark Bank Rate that remained at 9 percent. Previously, Prime Minister Narendra Modi was calling for lower interest rates. The RBI hinted that it is not impossible, saying in the statement:

A change in the monetary policy stance at the current juncture is premature. However, if the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle.

USD/INR fell from 61.9250 to 61.8250 as of 19:00 GMT today.

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