India's central bank holds rates amid US tariff battle
MUMBAI : India's central bank maintained its key interest rate at 5.50% today, as US President Donald Trump ramped up threats to raise tariffs on New Delhi because of Russian oil purchases.
The Reserve Bank of India (RBI) kept the repurchase rate steady, the level at which it lends to commercial banks, after a unanimous vote by a six-member panel.
A majority of analysts had forecast a pause following a surprise 50-basis-point reduction in June.
Bank governor Sanjay Malhotra said global trade challenges remained, but that the 'Indian economy holds bright prospects in the changing world order'.
'We have taken decisive and forward looking measures to support growth,' he said in a statement.
The RBI cut rates for the first time in nearly five years in February and followed up with two other reductions in April and June.
The Indian government has forecast above-average monsoon rains, which observers say should help growth, as higher agricultural output will aid the rural economy and keep vegetable prices stable.
However, Trump's announcement yesterday to 'substantially' hike tariffs on Indian imports because of New Delhi's purchases of Russian oil has added pressure on India.
Before that threat was made, the existing 10% US tariff on Indian products was already due to rise to 25% on Thursday.
Malhotra acknowledged that 'the uncertainties of tariffs are still evolving' even though 'growth is robust'.
Trump's pressure on India comes after he signalled fresh sanctions on Russia if it did not make progress by Friday towards a peace deal with Ukraine.
India, the world's most populous country, is not an export powerhouse, but the US is its largest trading partner.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
13 minutes ago
- Malay Mail
Solace Appoints Yo Ohara as Country Manager for Japan
Veteran enterprise software leader to drive adoption of event-driven architecture and expand Solace's footprint in Japan TOKYO, JAPAN - Media OutReach Newswire - 7 August 2025 -Solace, the leader in powering real-time, event-driven integration for the agentic age, today announced the appointment of Yo Ohara as, reinforcing the company's commitment to accelerating digital transformation across the over 25 years of leadership experience in enterprise software, Ohara brings a proven track record of driving growth and innovation in Japan's dynamic technology landscape. Prior to joining Solace, he served as Japan country leader at Software AG, where he led strategic initiatives in API integration, business process management, and IoT analytics. He also held senior leadership roles at ABBYY, Nuance Communications, and Sun Microsystems, consistently delivering results through customer-centric strategies and high-performing teams."Japan is a critical market for Solace as we continue to help organizations modernize their IT infrastructure through event-driven integration. Yo's deep industry expertise makes him our instrumental leader to expand our presence and help organizations capitalize on the transformative potential of data and AI in Japan," said Kent Nash, EVP, global sales of will lead Solace's Japan operations from its expanded Tokyo office, focusing on scaling customer engagement, strengthening the partner ecosystem, and enabling enterprises to leverage real-time data movement via Solace's advanced event streaming and management platform. Under Ohara's leadership, the Tokyo team is well-positioned to support rising demand for event-driven architecture and deliver greater value to customers across is deeply committed to supporting digital innovation in Japan by helping organizations become more agile, responsive, and connected. Through its industry-leading event-driven integration and agentic AI solutions, Solace enables enterprises to distribute data in real-time across diverse environments — from on-premises to cloud to IoT — enabling faster decision-making and enhanced customer #Solace The issuer is solely responsible for the content of this announcement. Solace Solace helps enterprises adopt AI by enabling real-time, event-driven integration across their entire business. Built on a modern event-driven architecture, Solace Platform connects systems, applications, and AI agents with the data they need — securely, seamlessly, and at scale. Established enterprises worldwide – including RBC Capital Markets, Heineken, PSA Singapore and Schwarz Group – trust Solace to enable time-sensitive applications and processes; modernize their application and integration landscape; and create seamless digital experiences for their customers, partners and employees. Learn more at
The Sun
43 minutes ago
- The Sun
Private prison profits surge under Trump immigration crackdown
NEW YORK: One of America's largest private prison operators has capitalised on President Donald Trump's immigration enforcement policies through soaring profits and expanded detention facilities. Geo Group announced a $300 million share repurchase programme following a $29.1 million quarterly profit, reversing last year's $32.5 million loss. Revenue grew 4.8% to $636.2 million as the company added thousands of detention beds nationwide to meet ICE demand. Executive Chairman George Zoley acknowledged logistical hurdles in ICE's plan to hire 10,000 staff, calling it 'very expensive and very complicated.' The Florida-based firm expects four new facilities to generate $240 million annually when fully operational in 2026. Another 5,900 idle beds across six locations could produce $310 million yearly if utilised by immigration authorities. Zoley noted Republican-led states like Florida and Texas are cooperating to address ICE's projected need for 100,000 detention beds. Congress recently tripled ICE's four-year detention budget to $45 billion under Trump's fiscal package. CoreCivic, another major prison operator, also raised financial targets after quarterly profits more than doubled to $38.5 million. Geo Group shares closed 2.6% higher following the earnings report. - AFP
The Star
an hour ago
- The Star
India braces as Trump issues 24-hour tariff threat
THE nation is racing to contain the economic fallout from President Donald Trump's threatened tariffs, which has left officials in New Delhi feeling shocked, jilted and unsure of how to respond. Trump's harsh language – calling India's economy 'dead', its tariff barriers 'obnoxious' and its people indifferent to the plight of Ukrainians – has been akin to a verbal slap in the face, according to an official in New Delhi, who asked not to be identified as the discussions are private. Officials have no template to deal with these kinds of public assaults, the person said, adding that the latest turn of events has put a strain on India's relationship with the US. Trump on Tuesday said he would increase the 25% tariff on Indian exports to the US 'substantially over the next 24 hours', citing the Asian nation's high barriers to trade and its purchases of Russian oil. India was 'fueling the war machine, and if they're going to do that, I'm not going to be happy,' Trump told CNBC. India's government is now bracing for higher tariffs and seeking to limit the possible economic damage. Prime Minister Narendra Modi has been urging Indians to buy more local goods to offset any slump in global demand, while the Ministry of Commerce and Industry is discussing ways to help exporters who would be hardest hit, such as in the gems and jewellery and textile sectors. Officials say they will continue to seek back-channel talks to help ease the tensions. India has been a target of Trump for weeks now because of its economic ties with Russia. The US president has given Vladimir Putin until Aug 8 to reach a truce with Ukraine and wants to ramp up the pressure by targeting energy purchases from countries like India and China that are helping to keep Russia's economy afloat. Modi's government is so far holding its ground, saying it's being unreasonably targeted by the US for its ties to Russia – its biggest supplier of oil and military equipment. Officials have signalled they won't instruct refiners to halt Russian crude purchases. For months, Indian trade officials had been negotiating with the Trump administration on a deal that both sides said was close to being finalised, with a tariff rate possibly below 20%. The US president's tone appeared to change last month when he threatened India with higher duties alongside others in the BRICS bloc of nations for what he said was the group's anti-US stance. He then followed up several days later with warnings about financial penalties on countries like India for buying oil from Russia. — Bloomberg
