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Speaking during the Monetary Policy Committee (MPC) meeting, he flagged risks to global supply chains and energy markets.
RBI Governor Sanjay Malhotra.
Reserve Bank of India Governor Sanjay Malhotra warned that disruptions in the Strait of Hormuz could weigh on economic growth, citing heightened geopolitical tensions in the region. Check All RBI MPC Updates Here
Speaking during the Monetary Policy Committee (MPC) meeting, he flagged risks to global supply chains and energy markets.
Malhotra said any supply disruption could push up crude oil and commodity prices, adding that prolonged instability may trigger a medium-term demand shock that impacts overall growth prospects.
The Reserve Bank of India on Wednesday kept key interest rates unchanged, citing expectations of a global recovery following the ceasefire in the six-week-long US-Israel-Iran conflict.
The decision comes after prolonged tensions in West Asia disrupted energy supplies, pushed up crude oil prices and heightened fiscal and inflationary pressures for import-dependent economies such as India.
Also Read: RBI Repo Rate Unchanged At 5.25%: Will It Impact Your Home, Personal Loan EMIs?
This is the first monetary policy review since the government reset the inflation target framework last month. The RBI has been tasked with maintaining retail inflation at 4 per cent, with a tolerance band of 2 percentage points on either side, for the next five years until March 2031.
Announcing the first bi-monthly policy for the current financial year, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 5.25 per cent, while retaining a neutral policy stance.
The pause in rate cuts comes as headline retail inflation, measured by the Consumer Price Index (CPI), eased to 3.21 per cent in February, moving closer to the RBI’s medium-term target of 4 per cent.
Also Read: OMC Stocks Rally: HPCL, BPCL, IOCL Jump Up To 10% As Crude Crashes Following Iran-US Ceasefire
At the same time, the rupee has depreciated by over 4 per cent since the onset of the conflict, adding pressure on import-driven inflation. However, the currency recovered marginally, appreciating by 50 paise to 92.56 against the US dollar following the ceasefire announcement between the US and Iran.
Earlier, based on MPC recommendations, the RBI had reduced the repo rate by 25 basis points each in February, April and December 2025, and by 50 basis points in June, amid easing inflation trends.
April 08, 2026, 10:20 IST
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