RBI Holds Rates Steady and Unveils Measures to Support Rupee at Record Low

India’s central bank kept its benchmark interest rate unchanged on Friday while unveiling measures to support the rupee after it fell to a record low, a move that gives policymakers room to avoid tightening while still responding to currency pressure. The decision reflects a balancing act between defending the currency and shielding an economy facing higher import costs, especially from expensive oil, according to Bloomberg’s reporting.

The Reserve Bank of India announced a package of steps aimed at bolstering the rupee after recent weakness intensified inflation risks and rattled markets. As reported by Bloomberg, the central bank chose to hold rates steady rather than raise borrowing costs immediately, even as the currency’s slide sharpened concern that imported inflation could accelerate.