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India's Central Bank Holds Rates - as Expected
- On Wednesday, the Reserve Bank of India held its repo rate at 5.25% for a fifth consecutive time, with the Monetary Policy Committee unanimously deciding on a neutral stance.
- The rate-setting panel convened Monday amid escalating geopolitical tensions and supply chain disruptions, with Governor Sanjay Malhotra noting the West Asia conflict disrupts key trade routes and amplifies crude oil volatility.
- Consumer inflation touched an 18-month high of 4.38% in June, prompting the RBI to raise its retail inflation estimate for 2026-27 to 5.1 per cent from 4.6 per cent; real GDP for FY27 projected at 6.7%.
- RBI Governor Malhotra said headline inflation will peak in the third quarter before declining, though HSBC Global Investment Research warned inflation could remain above 5% for eight months starting October, creating pressure the central bank cannot easily overlook.
- India remains highly vulnerable to supply disruptions, meeting nearly 85% of fuel needs via imports from the Strait of Hormuz, while facing macroeconomic headwinds including widening fiscal deficits and persistent capital outflows.
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RBI keeps policy rate unchanged for third time in row in FY27 amid West Asia crisis
Mumbai, Aug 05: In an expected move, the Reserve Bank of India on Wednesday kept key interest rates unchanged for the third time in a row this financial year as it weighed the impact of uncertain energy prices and supply disruptions caused by the ongoing West Asia crisis. Announcing the third bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain …
RBI Governor On India GDP: While announcing the results of the MPC meeting, RBI Governor Sanjay Malhotra shared the information about keeping the repo rate stable, he also increased the growth rate estimate of the Indian economy.
Coverage Details
Total News Sources57
Leaning Left5Leaning Right13Center6Last UpdatedBias Distribution54% Right
Bias Distribution
- 54% of the sources lean Right
54% Right
L 21%
C 25%
R 54%
Factuality
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