India's central bank kept its policy rate unchanged at 5.5% Wednesday, in line with the expectations of economists polled by Reuters, as it assessed the impact of earlier cuts.

Inflation moderated significantly in the first quarter, but growth could decelerate in the second half of the financial year due to global trade uncertainties, said Sanjay Malhotra, governor of the Reserve Bank of India.

The effects of the RBI's outsized rate cut of 50 basis points in June have yet to filter through the economy, explained Malhotra, adding that the decision to hold rates steady was unanimous.

"The acknowledgement that space has emerged for rate cuts without an outright commitment on the timeline for the next action is likely to work best for [earlier cuts to take effect] in our view," said Anubh

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