RBI holds 5.25% repo, Sanjay Malhotra flags Middle East risks
Business
The Reserve Bank of India just put out a heads-up about how the ongoing conflict in the Middle East could impact India's economy.
Governor Sanjay Malhotra says things are solid overall, but rising oil prices and global trade uncertainty are making it tricky.
To keep things steady, the central bank is holding the repo rate at 5.25% for now.
Imported inflation and export squeeze India
High oil prices could mean a bigger current account deficit for India and more imported inflation: basically, stuff from abroad might get pricier.
On top of that, India's exports are feeling the squeeze from weak global demand and shipping disruptions.
Still, remittances and strong service exports are helping balance things out despite all the tension.