India's RBI Supports Growth with Liquidity Boost but Holds Rates Amid High Inflation

INDIA - MUMBAI. The Reserve Bank of India (RBI) kept its key interest rate unchanged on Friday but cut the cash reserve ratio that banks are required to hold for the first time in over four years, effectively easing monetary conditions as economic growth slows.

India's GDP growth rate fell unexpectedly to 5.4% in the July-September quarter, its slowest pace in seven quarters, while inflation is quickening again and the rupee has fallen to record lows, limiting the RBI's room to manoeuvre heading into what looks to be a globally turbulent 2025.