India's central bank held key interest rates steady on Wednesday as expected, saying the economy remains steady, even though economists expect steep U.S. tariffs on Indian exports and subdued inflation to open room for limited further easing.

India’s central bank held its key interest rate as Donald Trump’s planned increase to tariffs on the country’s exports to the US threatens to send its economy into turmoil. The Reserve Bank of India ’s decision to keep the repo rate at 5.

As was widely expected, Fed policymakers on Wednesday left the central bank's overnight rate unchanged at a range of 4.25% to 4.5%.

Investors have started to worry that the U.S. could be headed for a spell of stagflation. The U.K. might already be there.

Global stock markets rose Tuesday as investors grew increasingly confident that the US Federal Reserve will cut interest rates next month.