Original Source
India's Central Bank Holds Key Rate Amid Iran War Uncertainty
India's Central Bank Maintains Repo Rate at 5.25%
The Reserve Bank of India (RBI) announced on the 8th that it would maintain its key policy rate, the repo rate, at 5.25%. This decision is seen as a move to observe the economic impact of the Iran war, which has introduced significant uncertainty. The move was widely expected, with 69 out of 71 economists in a Reuters poll conducted from March 23-26 forecasting a rate hold.
Concerns Over Economic Growth and Inflation Due to Oil Price Hikes
The Indian government projects economic growth for the current fiscal year to exceed 7%, with inflation near the central bank's target of 4%. However, the rise in global oil prices following attacks on Iran by the United States and Israel is expected to negatively impact these projections. Such an increase in oil prices could significantly reduce India's economic growth rate while intensifying inflationary pressures.
*Source: news.yahoo.co.jp (2026-04-08)*
