India Central Bank Stands Pat as Higher Inflation Looms

India’s central bank kept its policy rate unchanged as expected, saying economic activity is strong but that volatile food prices could soon raise inflation in the world’s most populous nation.

Reserve Bank of India Gov. Shaktikanta Das said Friday that the bank’s monetary-policy committee had decided to keep its policy repo rate at 6.50%, its fifth straight hold. All 10 analysts surveyed by The Wall Street Journal had predicted that the central bank would stand pat.