RBI holds repo rate steady amid inflation concerns and global uncertainties
The Reserve Bank of India has decided to keep its repo rate unchanged despite several economic headwinds. RBI Governor Sanjay Malhotra acknowledged that the ongoing conflict in West Asia is disrupting trade routes and supply chains, adding pressure to the global economy. The instability has also contributed to increased market volatility and weakened business confidence. However, the primary reason for holding the rate steady was that although inflation has risen, the resulting cost pressures have not spread broadly across the economy.
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