RBI pauses at 5.25%, hints at possible future rate hike

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

It decides how expensive it is to borrow money by setting something called the repo rate.

This week, it decided to keep that rate the same at 5.25%.

That means borrowing costs stay where they are for now.

The bank thinks India's economy will grow well next year, so it raised its growth forecast to 6.7%.

It also believes prices of things will rise more slowly than it earlier expected.

The bank's leader, Sanjay Malhotra, said it will keep watching how things change and make decisions based on new information.

Some experts think the next change might be making borrowing more expensive later in the year, rather than cheaper.