India's Central Bank Maintains Rates Amid Inflation Risks from Iran Conflict
The Reserve Bank of India (RBI) has decided to keep its benchmark interest rates unchanged at 5.25%, despite rising inflation risks linked to the ongoing conflict in Iran. The decision aligns with economists' expectations, as the RBI navigates the challenges posed by the geopolitical situation. The Iran war has led to increased energy prices and supply chain disruptions, impacting India's inflation and growth outlook. RBI Governor Sanjay Malhotra highlighted the risks to inflation and growth, noting the potential impact of the conflict on key commodities and logistics costs.