The Reserve Bank of India has held interest rates at 8.5%, after a series of rate increases.
The decision was widely expected as inflation remains high. The bank has raised the rates 13 times since March.
Despite this, the value of the Indian rupee fell to another low against the dollar this week.
The BBC reports the fall was driven by weakening economic data, which has pushed up the price of imported goods.
SMC Global Securities head of research Jagannadham Thunuguntla in New Delhi, said he now expects the next move to be a rate cut, although this may not happen until March.