RBI holds repo rate, cuts inflation forecast, raises GDP outlook

The Reserve Bank of India is the country's central bank, and it helps keep prices stable while supporting the economy.

Its committee meets from time to time to decide interest rates.

In August, the committee decided to keep the main interest rate, called the repo rate, unchanged at 5.25%.

This decision was expected by most experts.

The bank also said prices are likely to rise a little less than it earlier thought.

At the same time, it increased its prediction for how fast the economy is growing.

The bank's chief spoke in a calm way, suggesting the bank will not rush to raise rates because of higher food and fuel prices.

Some economists who expected a rate increase in October changed their minds after the announcement.

The bank still says its main job is to keep overall inflation close to its target.