RBI Holds Rates, Awaits Clarity On Iran War's Impact On Economy
The Reserve Bank of India kept its key policy rate unchanged on Wednesday, adopting a cautious wait-and-watch stance as policymakers assessed the fallout from the six-week Iran conflict on energy supplies, inflation and growth.
The central bank's six-member Monetary Policy Committee voted unanimously to keep the benchmark repurchase rate at 5.25 per cent, flagging heightened uncertainty after the West Asia conflict drove crude prices sharply higher, weakened the rupee and disrupted trade flows.
RBI's policy stance was retained at neutral.
Stating that geopolitical uncertainties had risen since the last policy meeting, RBI Governor Sanjay Malhotra said the rate-setting panel chose to "wait and watch".
