RBI Holds Rates, Keeps Neutral Stance Amid Inflation Risks

The Reserve Bank of India is like the country's big money manager.

It has a group called the Monetary Policy Committee that decides how much it costs people and businesses to borrow money.

In August, this group decided not to change borrowing costs and said it would keep watching carefully.

Prices of food and fuel have been going up, which is called inflation.

Inflation rose from 2.7 percent to 4.4 percent since the start of the year.

The bank expects inflation to stay around 5 percent over the next year.

At the same time, the bank is happy because India's economy is growing well, so it raised its growth prediction a little to 6.7 percent.

India is also selling more goods to other countries.

But the bank is watching for problems like changing oil prices, poor rain, and troubles in other parts of the world.