RBI Keeps Repo Rate Unchanged At 5.25%, Confident To Withstand Geopolitical Challenges
New Delhi: The Reserve Bank of India kept repo rate unchanged at 5.25 percent on Friday, June 5, amid mounting pressures to India due to the ongoing US-Iran conflict.
The decision comes after the six-member monetary policy committee held deliberations for two days, NDTV reported. India is confident to withstand geopolitical challenges emanating from the war, according to RBI governor Sanjay Malhotra.
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Noting that despite the weak monsoon could also impact growth and inflation, the country’s “adequate stocks provide comfort” The conflict in West Asia has triggered a sharp rise in crude oil prices, adding pressure on India’s inflation outlook and contributing to the depreciation of the rupee.
The macroeconomic environment is becoming increasingly challenging, amid the adverse impact of the US-Iran war in the Middle East on domestic growth and inflation dynamics.
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