Reserve Bank of India adopts ‘wait-and-watch’ stance amid West Asia tensions: Sanjay Malhotra

The Reserve Bank of India has adopted a cautious “wait-and-watch” approach on interest rates as geopolitical tensions in West Asia raise concerns over inflation and global economic stability. RBI Governor Sanjay Malhotra indicated that ongoing conflicts could trigger supply-side disruptions, particularly in crude oil and commodities, which may push inflationary pressures higher. He noted that while India’s direct trade exposure to the affected region remains manageable, indirect impacts—especially through energy prices and global financial markets—could pose risks. The central bank, therefore, prefers to closely monitor evolving conditions before making any policy adjustments.

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