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India's central bank holds benchmark policy rates as Iran war raises inflation risks

Apr 08, 2026 04:58 UTC

India’s central bank needs to weigh growth risks and inflation pressures from the Iran war as higher energy costs and supply disruptions mount..

  • India's central bank on Wednesday held benchmark interest rates at 5
  • 25%, warning that the Iran war had raised inflation worries while also flagging risks to economic growth
  • Economists polled by Reuters had forecast the policy rate to remain unchanged

India's central bank on Wednesday held benchmark interest rates at 5.25%, warning that the Iran war had raised inflation worries while also flagging risks to economic growth. Economists polled by Reuters had forecast the policy rate to remain unchanged. The intensity and the duration of the conflict, along with the resulting damage to the energy and other infrastructure, pose a "risk to the [India's] inflation and growth," Reserve Bank of India Governor Sanjay Malhotra said in his statement. The RBIlowered India's real GDP growthfor April-June quarter to 6.8% from 6.9% and for July-September q

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