MUMBAI: India’s central bank held interest rates in line with analysts’ expectations on Wednesday, rebuffing the Finance Ministry’s desire for a cut after India’s growth slowed.
The Reserve Bank of India (RBI) said the benchmark repo rate — the level at which it lends to commercial banks — would remain at 6.25 percent.
It was the fourth consecutive monetary policy committee (MPC) meeting where rates have been left unchanged.
Forty-eight out of 50 economists surveyed by Bloomberg News had predicted that the rate would be held despite India’s growth slowing to 6.1 percent in the recently ended fourth quarter.
The fall in gross domestic product (GDP), reported last month, came after the government’s shock move in November to ban most of the country’s currency in circulation.
A rate cut encourages consumers to spend, usually causing a spur in growth, and Indian Finance Minister Arun Jaitley called for a reduction in the rate this week owing to a sharp fall in inflation.
Consumer prices rose at just 2.99 percent in April from a year earlier, a record low, but the RBI — headed by Gov. Urjit Patel — said it needed to wait and see whether those levels would remain or spike before moving on rates.
“Premature action at this stage risks disruptive policy reversals later and the loss of credibility. Accordingly, the MPC decided to keep the policy rate unchanged with a neutral stance and remain watchful of incoming data,” it said in a statement.
The central bank last cut the interest rate in October when it was reduced by 25-basis points to 6.25 percent, the lowest level since November 2010.
That cut came shortly before Prime Minister Narendra Modi stunned the country by removing all 500 (around $7.50) and 1,000 rupee notes from circulation.
He defended it as a necessary strike against corruption but critics say it hurt some of the poorest in society while analysts insist the full impact of the note ban is still not known.
Indian businesses are gearing up for the introduction on July 1 of a new national goods and services tax, which experts say is likely to spur economic growth. The RBI said GST “is not expected to have a material impact on overall inflation.”
India’s central bank keeps rates at 6.25%
India’s central bank keeps rates at 6.25%
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
