Reserve Bank of India (RBI) Governor Sanjay Malhotra
| Photo Credit:
REUTERS/FRANCIS MASCARENHAS
The RBI’s six-member rate setting panel has unanimously determined to maintain the repo rate unchanged at 5.25 per cent in its first assembly of FY27. The determination comes within the wake of dangers to inflation and development from rising crude oil costs and provide chain disruptions because of the West Asia warfare.
Video Credit: Businessline
The financial coverage committee additionally determined to proceed with its “neutral” financial coverage stance.
While the financial system is on a stronger footing, Governor Malhotra cautioned about upside dangers to inflation outlook attributable to increased international vitality costs, provide chain disruptions and the Super El Nino climate phenomenon.
He stated excessive enter and insurance coverage prices can constrain development. The MPC opined that intensitying battle and harm to vitality infrastructure in West Asia are dangers to development and due to this fact it felt that it’s prudent to attend and watch. Malhotra noticed that muted international development will affect exterior demand and remittances.
“The MPC noted that the intensity and the duration of the conflict in West Asia and the resultant damage to the energy and other infrastructure add risk to the inflation and growth outlooks. However, the fundamentals of the Indian economy are on a stronger footing, providing it with greater resilience to withstand shocks now than in the past,” Malhotra stated.
“The economy is confronted with a supply shock. It is prudent to wait and watch the changing circumstances and the evolving growth-inflation outlook,” he added
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Published on April 8, 2026