India rupee rates to stay favourable for UAE expats, RBI retains 6.5% rate

India rupee rates to stay favourable for UAE expats, RBI retains 6.5% rate

The rupee had been inching closer to 22.5 to dirham in recent days, after being at 22.31 on August 1. Analysts suggest there could be further pressure on the Indian currency in the day ahead, and that works to an advantage for Indian expats in the Gulf. Check the latest forex rates here.

This is the third successive time the Reserve Bank of India has retained the base rate at 6.5 per cent, which has risen by 250 basis points since May 2022. India, along with most of the global economies, have been fighting to keep inflation under control, and raising lending rates has been the prime tool to make that happen.

The RBI is projecting GDP growth at 6.5 per cent, and it is walking a fine line between maintaining that growth and bringing inflation under a semblance of control.

“RBI was expected to hold on to its interest rates,” said Krishnan Ramachandran, CEO of Barjeel Geojit Financial Services, based in Dubai. “India’s retail inflation has been a concern over the last few months, but is expected to moderate in the next 2-3 months.

“The housing loan market has been quite resilient despite the rate increases since May 2022. Any move by the