India's central bank keeps benchmark rates steady amid creeping inflation

Reserve Bank of India (RBI) Governor Sanjay Malhotra speaks during a press conference after the monetary policy review at RBI headquarters in Mumbai on December 5, 2025. India's central bank cut interest rates on December 5 as low inflation provided room to help cushion the world's fastest-growing major economy against US President Donald Trump's tariff blitz. (Photo by Punit PARANJPE / AFP via Getty Images)Punit Paranjpe | Afp | Getty ImagesIndia's central bank on Wednesday held interest rates at 5.25% for a fifth time in a row, even as the country's retail inflation has crossed the Reserve Bank of India's medium-term target of 4%.Economists polled by Reuters had forecasted the policy rate to remain unchanged.Several Asian countries including Japan, the Philippines, Indonesia, and South Korea have raised interest rates in the past few months to curb inflation as the conflict in the Middle East has driven energy prices higher. India's consumer inflation touched an 18-month high of 4.38% in June, as oil prices surged. Since May, the government has partially passed on the fuel price increases to the public, adding to cost pressures. The Indian central bank, however, has repeatedly em...