April 8 (Reuters) – The Reserve Bank of India kept its key policy rate unchangedon Wednesday as it awaits clearer evidence of the impact from the Iran war on the South Asian nation’s economy.
COMMENTARY:
VIKRAM CHABBRA, SENIOR ECONOMIST, 360 ONE ASSET, MUMBAI
“The economic outlook remains clouded by uncertainty.”
“The two‑week ceasefire in West Asia has eased tensions for now, but inflation and growth risks continue to loom over the economy. El Niño adds to the pressure, threatening a weak monsoon and higher food prices.”
“With war and weather unresolved, the RBI is likely to stay on pause until a clearer picture emerges.” UPASNA BHARDWAJ, CHIEF ECONOMIST, KOTAK MAHINDRA BANK, MUMBAI”RBI expectedly kept rates and stance unchanged.”
“After the circulars on restricting offshore speculative activity, the recent de-escalation on the geopolitical front has provided some relief to the Indian rupee, providing room for RBI to assess the lasting impact on growth (and) inflation.”
“We expect RBI to be squarely data dependent henceforth given the fluidity of the situation. Meanwhile, we expect RBI to monitor liquidity conditions closely.”
(Reporting by Urvi Dugar; Compiled by Dhanya Skariachan; Editing by Ronojoy Mazumdar and Eileen Soreng)
