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2026-04-07 13:12:17
[RBI Expected to Hold Rates Steady on Wednesday Amid Rupee Depreciation and Growth Dilemma] (1) The Reserve Bank of India (RBI) is likely to keep interest rates unchanged on Wednesday, its first policy decision since the start of the Iran-Iraq war. All 30 economists surveyed by Bloomberg expect the benchmark repo rate to remain unchanged at 5.25%. The central bank has previously hinted at holding rates steady for an extended period despite a bleak economic outlook. (2) The Middle East crisis has put the Monetary Policy Committee in a dilemma. The sharp depreciation of the rupee since the conflict began has become a key pressure point, and the RBI has taken its most aggressive measures in over a decade to curb speculative bets against the rupee. (3) The RBI now faces a dilemma: whether to raise interest rates to support the currency or to keep borrowing costs low to buffer economic growth.
