RBI warns global conflicts threaten inflation and current account deficit

Business Apr 08, 2026

The Reserve Bank of India, or RBI, is sounding the alarm on how global conflicts could shake up our economy.
At its recent policy meeting, the RBI pointed out that rising oil prices might push up inflation and make India's current account deficit wider, a double whammy for everyone's wallets.

RBI keeps main rate at 5.25%

Thanks to these global tensions, things like energy and fertilizers may get pricier or harder to find, which can hit farming, factories, and services here at home.
The RBI also warned that all this uncertainty could make it tougher to borrow or spend money, putting a damper on consumption and investments.
For now, though, the RBI is keeping its main interest rate steady at 5.25% as it tries to balance growth with keeping prices in check.