US-Iran conflict, El Nino: Why RBI did not hike repo rate despite headwinds
The Reserve Bank of India (RBI) decided to maintain the repo rate despite global economic pressures, including the US-Iran conflict and El Niño, as inflation's impact remains limited. RBI Governor Sanjay Malhotra noted that while the West Asia conflict disrupts trade and increases market volatility, the overall cost pressures have not affected the economy broadly. This decision reflects the central bank's cautious approach amid rising inflation.