RBI holds repo at 5.25% amid West Asia crisis

India Apr 08, 2026

The Reserve Bank of India (RBI) is keeping the repo rate steady at 5.25%, even with worries about the West Asia crisis making energy prices jump and supply chains shaky.
RBI Governor Sanjay Malhotra sounded hopeful, mentioning a recent ceasefire could ease some of these pressures.

Sanjay Malhotra sees India growth slowing

Malhotra pointed out that India's solid economic base and government efforts are helping shield the country from global shocks, though risks like disruptions in key shipping routes remain.
GDP growth is expected to slow a bit this year (from 6.8% in early quarters to 7.2% by year-end) while inflation might start at 4% but could climb if oil prices stay high, putting pressure on imports and the current account deficit.