India's Central Bank Holds Rates Amid Middle East Crisis

On April 8, India's central bank announced its decision to maintain interest rates following the outbreak of the Middle East crisis. According to Jin10, the bank aims to support economic growth while addressing the significant depreciation of the rupee. The Monetary Policy Committee unanimously voted to keep the benchmark repo rate at 5.25%, aligning with market expectations. The policy stance remains neutral. This decision reflects the central bank's cautious approach amid tensions between Iran and the United States, which pose challenges to India's energy supply and growth outlook. Since the conflict began, the rupee's decline has been a major concern for the Reserve Bank of India, occupying much of its attention in recent days. Central Bank Governor Sanjay Malhotra stated that the committee maintains a neutral stance to retain the flexibility needed to effectively respond to new pressures.