RBI decided to hold rates as West Asia conflict stoked inflation, growth concerns: MPC minutes
The Reserve Bank of India's Monetary Policy Committee (MPC) unanimously decided to hold interest rates unchanged at 5.25% due to rising uncertainty from the West Asia conflict. The conflict has pushed crude prices higher, weakened the rupee, and disrupted trade flows, posing risks to India's economy.
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) has decided to keep interest rates unchanged. The six-member panel unanimously voted to retain the policy rate at 5.25%, citing rising volatility after the West Asia crisis. The conflict has pushed crude prices sharply higher, weakened the rupee, and disrupted trade flows. RBI Governor Sanjay Malhotra said the conflict poses risks to the Indian economy through multiple channels. The central bank retained its policy stance at 'neutral'. The MPC members warned that prolonged supply-chain disruptions could create downside risks to growth and upside risks to inflation.
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