The Reserve Bank of India kept its key rates unchanged once again as expected, citing upside risks to medium-term inflation target. The decision announced Tuesday meant that the repo rate was left unchanged at 8.00 percent for the fourth straight policy meeting. The repo rate is the rate at which the central bank lends to commercial banks.
India's rating outlook was raised to 'stable' from 'negative' by Standard & Poor's on Friday, as the firm saw the improved political setting heralding a more conducive environment for reforms. The stable outlook reflects expectations that the newly elected government will be able to implement reforms that spur growth, which in turn improves fiscal performance.