The Reserve Bank of India has maintained its key interest rate at 5.50%, citing a steady economy but highlighting risks from US tariffs and global trade tensions.

Despite global trade tensions, India's economy remains resilient, supported by strong rural demand, favorable weather, and ongoing fiscal and monetary measures.

Minutes from the recent RBI policy meeting expressed concerns about persistent uncertainties in India-US trade policies, which could pose a downside risk to economic growth.

India's inflation rate has fallen to 1.55% in July, the lowest in eight years, mainly due to declining food prices, and is expected to stay below the 4% target for the fiscal year.